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  • Mike Paterson

Forex pairs ranging amid further Yen selling

Wednesday 31 March 2021

We've continued to see some month-end JPY supply that I've been warning about here and on Twitter amid general USD demand as 10-year bond yields remain underpinned. Also news that that Hitachi is acquiring US Global Logic for $9.6bln helping but USDJPY capping into reported barrier options at 111.00 with larger noted at 112.00

So we've also seen good dip demand as expected on JPY pairs and I hope the steer has helped but rally sellers still poised. Final month-end flow signals point to moderate USD sales (apart from USDJPY) still and that will help explain the dip demand on core pairs atm.

Lots of variable/fickle flows expected still with some good-size option interest in play too so don't over-analyze. Just pick your preferred entry/exit levels and don't be greedy. Keep an eye into today's 4pm London fix too for last minute month-end activity.

GBPUSD: Enjoyed another good retreat to test 1.3700 but decent demand down there helped by GBPJPY demand has seen a bounce back to post 1.3780 as I type. EURGBP: Still ranging in these lower levels with 0.8500-60 still our lines in the sand. Large option expiries today that should help support.GBPJPY: A good line at 151.20 then 151.50 now as we rally again to test 152.30 amid the JPY supply and helping to underpin GBPUSD but rally sellers poised still.

I remain a GBP rally seller across the pairs but still not getting greedy on the retreats. Good two-way pips to be had for the moment.

EURUSD: Remains under pressure but 1.1700-05 holding so far and pips duly banked in the retreat. Options rolling off today and might be helping currtent rally along with EUR dip demand on the crosses. USDJPY: JPY supply and USD demand double whammy meant a further push to test reported barrier at 111.00 helped in the dip by large expiries at 110.00 and 110.20 today that I highlighted. EURJPY: Finds itself underpinned and rising amid JPY supply still and EUR now fiding some dip demand across the board.USDCHF: Finding a support line now at 0.9400 amid the general USD demand but also EURCHF bids at 1.1030-35 with the SNB ever watchful of course and ready to help.

AUDUSD: Still capped at 0.7660 but underpinned by the JPY supply with AUDJPY demand supporting as well as 0.7580 bids. Sizeable options in play again today.USDCAD: Tightly bound again with a base still at 1.2580 but 1.2650 cap amid the variable USD/Oil tones.

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

Interbank rates: 08.45 BST

GBPUSD 1.3748

EURUSD 1.1733

EURGBP 0.8533

GBPEUR 1.1717

GBPAUD 1.8073

GBPCAD 1.7325

GBPJPY 152.20

GBPZAR 20.4112

GBPHKD 10.6588

USDJPY 110.73

USDZAR 14.8009

EURJPY 129.89

EURCHF 1.1053

EURHKD 9.0969

AUDUSD 0.7608

USDCAD 1.2602

USDCHF 0.9423

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