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  • Mike Paterson

Euro under pressure again

Wednesday 5 May 2021

A wobble in risk sentiment yesterday being largely attributed to some pre-recorded tapering comments by Yellen saw equities and cryptos mostly fall but also did Gold after failing at 1800. Seems that dip demand is prevailing again though and we've seen some better risk sentiment since but the Euro is notably on the slide again as I've been warning here and on Twitter too.

Meanwhile Japanese and Chinese markets remain closed for holidays until tomorrow where we also have the latest BOE decision casting a shadow. Big local elections day in the UK tomorrow too which will be a barometer of government support but not likely to be too shaken atm given the happy-clappy vaccine roll out optimism. Results will drift out on Friday.

Jury still definitely out on the Greenback 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: Yet another cap into 1.3920 after finding support at 1.3840 yesterday. EURGBP selling again helping to underpin this pair.EURGBP: Still finding a cap at 0.8680-00 and now testing 0.8630 as the EURUSD retreat outstrips GBPUSD amid the general EUR malaise.GBPJPY: Rally sellers at 152.20 prevailing atm after finding good support at 151.00 amid yesterday's risk wobble per my tweets.

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: 1.2050 providing a cap this time and now posting fresh recent lows of 1.1986.USDJPY: 109.50 duly providing a cap but equally finding good dip demand around 109.00 again on that risk wobble as per my tweet. EURJPY: A decent cap at 131.50 now as both core pairs find rally sellers again but holding 131.00 as I type on some better risk tones.USDCHF: Holding 0.9130 now as EURUSD retreats but rallies still tempered by EURCHF supply above 1.1000 but with the SNB ever watchful and ready to help.EURCHF: Holding 1.0960 still but equally failing at 1.1000

AUDUSD: Capped around 0.7730 this time but finding support at the larger 0.7675-80 bids/support helped by AUDJPY demand around 84.00 per my tweet. Option interest at 0.7750 potentially in play.USDCAD: A good hold of 1.2280 now after a spike into 1.2350 amid some CADJPY selling on that risk wobble. Large options today at 1.2300 helping to contain as I've been warning.

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

Interbank rates: 08.38 BST

GBPUSD 1.3893

EURUSD 1.1993

EURGBP 0.8630

GBPEUR 1.1587

GBPAUD 1.8015

GBPCAD 1.7089

GBPJPY 152.04

GBPZAR 20.0770

GBPHKD 10.7712

USDJPY 109.44

USDZAR 14.4639

EURJPY 131.23

EURCHF 1.0982

EURHKD 9.2960

AUDUSD 0.7713

USDCAD 1.2299

USDCHF 0.9160

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