Equity markets wobble again but Forex pairs still mixed
Tuesday 11 May 2021
Yesterday saw some sharp reversals in equities and metals which has continued in Asia and Europe but the change in risk sentiment in Forex pairs has yet to really make an impact as has happened a few times in recent sessions especially in CHF pairs.
Today in the UK we have the Queens Speech in the House of Lords when she will outline 30 laws the government intend to pass in the coming year. This includes a number of bills carried over from the previous session of Parliament, which ended in April. Everything will be voted through given the government's comfortable majority.Little market impact really but expect lots of happy-clappy tones as the UK lockdown continues to ease.
Jury still out on the Greenback overall so, as always in these fickle times, be careful with your trading. Pick your preferred entry/exit levels and don't be greedy or over-analyze. Patience a virtue too of course.
GBPUSD: Capped at 1.4160 helped some decent offers at 1.4150 but equally based at 1.4100. EURGBP supply and GBPJPY dip demand still helping to underpin.EURGBP: The key 0.8620-30 support finally broke and now tested the good bids at 0.8580-85 but holding so far. Rally sellers still poised.GBPJPY: Rally sellers at 154.00 prevailing for the moment but underpinned now at 153.50 seemingly shrugging off the equity market wobble
I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats. Caution advised still as equally a case for buying dips still atm.
EURUSD: A good hold of 1.2120 this time and some re-sells pips banked after 1.2180 duly was a bigger challenge as I highlighted yesterday. USDJPY: A hold of 108.60 but failing around 109.00 still and some re-sells duly placed again. EURJPY: 132.00 now a decent base but sellers still poised at 132.50.USDCHF: Successfully held onto those 0.8985 bids as EURUSD retreated but with EURCHF dip demand around 1.0930 notable with the SNB ever watchful and ready to help. Equity market wobble may yet help to cap. EURCHF: Still holding 1.0930 but equally failing at 1.0980 still
AUDUSD: Failure at 0.7900 and a decent retreat into 0.7820 helped by copper and iron ore price falls. USDCAD: The retreat continued amid the CADJPY demand and firm oil prices still but holding 1.2080 this time after a cap at 1.2130.
Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good week everyone.
Interbank rates: 08.18 BST