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  • Mike Paterson

Euro finds support amid variable USD and risk tones

Tuesday 8 June 2021

Yesterday it was the Euro's turn to shine a little ( all relative in these tight ranging markets) after the RIA reported that Russia was "preparing stimulus to move FX liquidity into Euros" but tempered a little by the Russian Foreign Ministry saying "Russia not planning any restrictions on Dollar usage.To rely on economic means to shift from Dollar".

Cue a steady rally that saw EURUSD test 1.2200 again and helping EURGBP hold 0.8580 after a decent retreat from 0.8610 and EURJPY rallying to 133.35 from 132.90. Sellers returning again though as I warned as we continue to range. ECB on Thursday a focus given recent comments but I'm not holding my breath.

Jury on the Greenback still out but risk sentiment remain fragile as Bitcoin remains under pressure nd equities off their highs again.

As always in these fickle times ignore the noise and be careful with your trading as we continue to range tightly. Pick your preferred entry/exit levels and don't be greedy or over-analyze. Patience and discipline are key too of course. Let the algos do the work around data releases and headlines and take advantage of that as suits your interest.

GBPUSD: Duly capped at 1.4200 on the rally and since tested 1.4135 this morning. Re-sells placed per my tweets and ongoing strategy but staying core short as ever. Cross pair flows still very much in evidence and some early London selling as I type. EURGBP: A good hold of 0.8580-85 again and up through 0.8600 on that Russian Eur news that in turn has been capping Cable again too but sellers at 0.8620 still poised.GBPJPY: Now failing around 155.10 amid some softer risk tones after rallying from 154.60 and in retreat again as I type.

I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats.

EURUSD: A good hold of 1.2150 yesterday before the rally to look at 1.2200 and re-sells duly placed per my tweet. 1.2165 lows on so far on the retreat and some pips banked. USDJPY: Holding previous lows of 109.15-20 after breaking 109.30-35 and more pips banked from recent re-sells per my tweets but still staying core short amid softer risk tones. Decent options interest in play over next couple of days to help contain.EURJPY: 133.40 now capping after that rally from 132.80-90. Inherent EUR demand vs softer risk sentiment should help contain still.USDCHF: Holding 0.8970 this time in its latest retreat after failing at 0.9010 as EURUSD caps again but rallies still tempered by EURCHF supply but with the SNB ever vigilant/helpful. EURCHF: Capped into 1.0950 still but holding 1.0930 again atm with SNB shadow ever present

AUDUSD: A decent cap at 0.7765 per my tweets but demand notable still at 0.7720-30.USDCAD: Holding previous pivot area at 1.2160 and looking to test 1.2100 again this morning as we continue to range amid variable USD and oil tones. CADJPY selling still helping to support the dips too.

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: 07.45 BST

GBPUSD 1.4157

EURUSD 1.2181

EURGBP 0.8603

GBPEUR 1.1620

GBPAUD 1.8270

GBPCAD 1.7103

GBPJPY 154.90

GBPZAR 19.1721

GBPHKD 10.9705

USDJPY 109.44

USDZAR 13.5688

EURJPY 133.28

EURCHF 1.0936

EURHKD 9.4411

AUDUSD 0.7747

USDCAD 1.2084

USDCHF 0.8979

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