Currencies ranging still as jury remains out
Tuesday 24 July 2018
Lots of background noise out there still but traders are still waiting for a flash of illumination and we've seen currencies trade up and down in tight ranges again.
GBPUSD held the 1.3150-60 resistance area and eventually fell to post 1.3072 earlier this morning in Asia only to bounce back to 1.3130. Immediate support/buying interest now around 1.3100,1.3075-80 then 1.3050.Sellers now poised around 1.3130 then 1.3150-60 and 1.3180-1.3200 still. BOE dove Broadbent offered little of note in a speech yesterday as the next MPC decision looms with the markets still expecting a rate hike but I'm not so sure. If we do get one I stand by my view that it will be mainly to create some wriggle room for when the next financial crisis hits the UK/globe sooner rather than later. Keep selling the rallies but there's some decent lines of support around 1.3000 and 1.2950 should we break down through current range.
EURGBP has drifted down to look at 0.8900 (GBPEUR up to 1.1227) but should remain underpinned as we head into the usual month-end buying albeit mixed with the latest ECB interest rate/monetary policy decision on Thursday. Sellers now poised around 0.8930, 0.8950 then larger between 0.8980-9000 still. Buyers at 0.8900 then 0.8875-80 and 0.8850-60. Keep buying the dips.
EURUSD fell again but held the 1.1650 support area and been back up to look at 1.1700 with large option contract expiries once again in play.Buyers lined up around 1.1650-60 still then larger at 1.1620 with more into 1.1600 and 1.1580. Sellers poised around 1.1700 then 1.1720 and 1.1750.
USDJPY is still finding sellers as risk-off sentiment generally prevails amid equity and with the BOJ seemingly shifting monetary policy a tad.Buyers still between 110.75-80, 110.50 then 110.30 and 110.00.Sellers now poised around 111.50 with larger interest between 111.50-112.00. USDCHF has held 0.9900 again but still finding sellers poised on the rallies and in EURCHF too.
AUDUSD held another test of 0.7350 but has failed to get back up through 0.7400. Buyers lining up at 0.7350 still then 0.7320 and 0.7300 where a barrier option defence is expected. Immediate sell interest at 0.7400 then 0.7420 and 0.7450. After another dip USDCAD is still trying to make its mind up with sellers now around 1.3200 and 1.3230 with buyers poised at 1.3150, 1.3130 and 1.3100.
Fickle markets still prevailing so get your orders in to take full advantage of these moves.
Have a good day out there one and all.
Interbank Rate 08.50 BST GBPUSD 1.3105 EURUSD 1.1691 EURGBP 0.8917 GBPEUR 1.1212 USDJPY 111.18 USDCAD 1.3170 USDCHF 0.9938 GBPAUD 1.7761 GBPCAD 1.7268 GBPCHF 1.3031 GBPZAR 17.6478 GBPHKD 10.1611 EURHKD 9.0627