Euro under pressure.
Wednesday 17 March 2021
While the Pound has enjoyed a better 24 hours in these ever fickle markets the same can not be said for the Euro which has had a delayed reaction to the ongoing vaccince rollout concerns coupled with perceived increasing difference in interest rate divergence and EUR pairs have seen a solid tumble across the board.
Today sees the latest decision and presser from the US Fed and the BOE tomorrow so we should expect some containment in ranges helped by some decent options contracts expiries over the next couple of days. Some variable USD tones and sentiment as markets continue to chase their tail.
The FX jury remains out still so we need to focus on price action and value for money in our entry and exit levels. Discipline and patience needed more than ever in these ever fickle/fragile times.
GBPUSD has had a lively 24 hours and after holding 1.3810 yesterday we've been back up to test 1.3925-30 before capping again.EURGBP has reversed its recent rally, and some, to post 0.8540 (GBPEUR 1.1711) before bouncing to 0.8570 but sellers remain poised. Large options interest at 0.8600 and tomorrow in play too.GBPJPY found a base at 151.00 as GBP reversed its losses but duly ran out of oxygen at 152.00 with rally sellers on core pairs both poised still.
I remain poised to sell GBP into rallies as a jobbing preference but respecting dip demand still with price action ever fickle. Equally a case still for going long in the dips therefore as we continue to range at these lower levels. Patience, entry/exit level and not getting greedy remain key.
USDJPY found support at the stronger 108.75-80 line this time but once again capped around 109.20-25 as rally sellers remain poised. EURJPY found support at 129.50 as I tweeted but equally now has a good cap at 130.00-10 as core pairs find rally sellers. EURUSD broke down through 1.1900-10 under the general EUR pressure but that decent option interest between 1.1885-00 duly provided support but sellers lurking still.USDCHF has traded 0.9240-90 as EURUSD falls and bounces and EURCHF held 1.1000 in its continued retreat after breaking 1.1030 but with the SNB ever watchful.
AUDUSD has found a decent base again at 0.7720-30 after failing at 0.7760 still while USDCAD is finding support at 1.2430 amid the generally firmer USD tones and as oil trades off its highs again but has sellers at 1.2480 prevailing for the moment.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.45 GMT