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  • Mike Paterson

Euro takes its turn to shine

Wednesday 25 November 2020

Amid some generally softer USD and better risk tones we've seen EUR gains across the board as EURUSD leads the way higher and breaking up through the key 1.1920 area and that's underpinning EUR pairs.

Some good two-way business to be had still though as witnessed by yesterday's USD demand again with GBPUSD retreating into 1.3300 only to test 1.3380 again this morning before retreating into 1.3350 as I type. Once again a case of picking your entry/exit levels and not getting greedy. Go with the flow.

US corporate month-end USD demand/repatriation for tax needs still in the mix along with the usual month-end equity hedge related USD flows which are still reported to be negative.

GBPUSD remains in a 1.3285-1.3385 range while EURGBP has held above 0.8900 this time around amid the general EUR demand and now posted 0.8930 highs helping to cap GBPUSD. Demand now between 0.8880-8900. GBPJPY duly found a higher base at 139.20 where I noted bids building yesterday on the better risk tones but equally capping at 139.80 this morning on the GBP-led retreat.

I stay poised to sell GBP rallies as my preferred side and buy back in the dips as ever.Patience continues to be a virtue and rally-selling in GBPUSD is still bringing some reward but entry level key as always. Definitely still expecting dip demand as I've warned for a while now. Brexit still the large elephant in the room.

USDJPY has duly capped at 104.80 where we had some decent offers I mentioned here and on Twitter ahead of the 105.00 option expiries.EURJPY held 123.80 and rallied to test 124.50 amid the better risk and general EUR demand. EURUSD found support below 1.1850 in yesterday's USD demand-led retreat but rallied strongly again to post 1.1930 this morning before fading back below 1.1900 as I type.USDCHF once again has held around 0.9080 as EURUSD finds finds sellers above 1.1920 but with EURCHF underpinned with the SNB still ever watchful.

AUDUSD held 0.7310 on the retreat back down through 0.7340 and tested 0.7365-70 offers/tech resistance as Les highlighted. USDCAD enjoyed a further ride higher on some USD demand but failed above 1.3080 again and now testing 1.3000 as I type amid the variable USD/risk/firmer oil tones.

Markets are ever-fickle so don't forget to contact me if there's areas that you might need some further help with.

Let's continue to be careful out there in all things. Staying safe must be our main priority still.

Interbank rates: 08.25 GMT

GBPUSD 1.3368

EURUSD 1.1915

EURGBP 0.8917

GBPEUR 1.1213

GBPAUD 1.8172

GBPCAD 1.7378

GBPJPY 139.53

GBPZAR 20.2837

GBPHKD 10.3553

USDJPY 104.40

USDZAR 15.2067

EURJPY 124.41

EURCHF 1.0860

EURHKD 9.2351

AUDUSD 0.7354

USDCAD 1.3003

USDCHF 0.9111

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