Forex pairs rangebound as the uncertainty continues
Friday 20 November 2020
Yes folks, more of the same at the moment as we finish a relatively quiet week but one that also seems to have flown by.
COVID, vaccines, Brexit, FOMC et al still in the mix and markets now looking for a led somewhere/somehow having dealt themselves into a hole. Come on Forex gods, unleash your power!
GBPUSD duly found support around 1.3200 after a quickj dip on some Brexit noise but held as per per my tweets and re-sells duly placed into 1.3275-80 after buy backs made in yesterday's retreat. EURGBP broke down through 0.8935-40 again but held 0.8925 this time helped by those large expiries I highlighted yesterday and since back to challege 0.8965 again before retreating to 0.8925 once more as I type. GBPJPY found a cap around 138.00 but holding 137.20 again after its latest retreat amid the variable risk/USD tones.
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 expecting dip demand still as I've said for a while now amid the current USD supply.Brexit remains very much in the room and the negative impact of COVID on the UK economy before any sort of vaccine-led recovery still in the mix.
USDJPY held 103.60 again and rallied to test 104.20 this time but tempered again by some risk-off JPY demand snd softer USD generally and now back down at 103.78. EURJPY failed at 123.50 this time but now holding 123.00 as the two-way business continues. EURUSD in retreat again as I type after failing above 1.1885 from holding 1.1815-20 and now testing 1.1850-60 bids as I type.
USDCHF has held 0.9080-00 again as EURUSD retreats with EURCHF steady and the SNB still ever watchful.
AUDUSD duly held 0.7250 amid the firmer USD/softer risk tones. Buy-backs duly made again in the dip and poised to place re-sells around 0.7300-20 again.USDCAD failed above 1.3110 again on the softer USD tones and oil price steady and now testing 1.3050 as I type.
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. Have a great weekend.
Interbank rates: 08.35 GMT