Consolidation time again as jury remains out on risk
Wednesday 9 October 2019
We've seen the Pound find some dip support again this morning as Brexit talks continue after a decent drop yesterday and the Chinese trade delegation arriving in numbers has also led to some risk-on reaction. Issues ongoing in Turkey/Syria and elsewhere though so all in the mix still and the jury remains well and truly out as we continue to trade in tight ranges.
GBPUSD duly found support around recent lows at 1.2200 helped by some GBPJPY risk-on demand and currently breaking up through 1.2250 eeee 1.2280 in a rush as I type helped by a Times report that the EU is allegedly prepared to make some backstop concessions in a final bid to reach a deal.EURGBP has remained underpinned on the generally softer Pound and we've now been up to 0.8987 (GBPEUR down to 1.1127) before this morning's GBP rebound. GBPJPY has seen good two-way business again with a failure at 131.80 resulting in another retreat helped by a softer Pound/risk combo yesterday and breaking down to post 130.45 before also rebounding this morning.
I will continue to rally-sell GBP as my preferred strategy overall too amid the ongoing uncertainty/indecision including Brexit/political fallout but happy to buy back in the dips as always.Rinse and repeat.Still no reason to change my view any time soon as the current madness plays out but caution as ever is appropriate.
EURUSD failed to break 1.1000 yet again and that continues to be a decent line in the sand and the pair retreated again to test 1.0950 this time before rebounding to 1.0990 as I type.USDJPY yesterday fell further on the softer risk tones and we broke down through 107.00 to test the next layer of bids at 106.80 before rebounding to look at 107.30 where we've now capped three times.USDCHF duly found some dip demand at 0.9900 again and EURCHF too at 1.0860 but rally sellers will remain poised as EURUSD tests 1.1000 and softer risk sentiment overall.
AUDUSD remains on the back foot and has posted fresh recent lows of 0.6723 helped by some AUDJPY supply yesterday before reversing but unable to get back above 0.6750 as I type. USDCAD has held around 1.3300 but still unable to break above 1.3350.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Have a good day out there one and all.
Interbank Rate 08.20 BST