Forex pairs ranging still as equities recover some poise
Wednesday 12 May 2021
We've seen some dip demand finally appear in equity markets but it's still a fragile landscape out there and FX pairs continuing to range therefore.
UK Q1 GDP out earlier was soggy as expected but some expectation to be more cheerful moving forward as lockdown conditions continue to ease. With inflation very much the buzz word right now markets will be keen to view the latest US CPI data due at 12.30 GMT.
Jury still out on the Greenback overall 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: Still capping around 1.4160 but equally based at 1.4110. EURGBP supply and GBPJPY dip demand still helping to underpin.EURGBP: Testing the good bids at 0.8580-85 again as I type after failing above 0.8600 yesterday but holding so far. Rally sellers still poised.GBPJPY: Rally sellers at 154.00 prevailing again for the moment but still underpinned at 153.50.
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: A good hold of 1.2120 again and some re-sells pips banked from 1.2180 failure again. Large option interest tomorrow expected to help contain still.USDJPY: A good hold of 108.30 but failing into 109.00 still.EURJPY: 131.80 now a decent base after duly capping into 132.50 which I highlighted yesterday but sellers poised at 132.25-30.USDCHF: Successfully held onto 0.9000 as EURUSD retreated and with EURCHF dip demand now around 1.0950 notable with the SNB ever watchful and ready to help. Rally sellers still poised.EURCHF: Now holding 1.0950 but equally failing above 1.0980 atm.
AUDUSD: Failure at 0.7860 and a decent retreat into 0.7780 this time but some renewed AUDJPY demand helping to support along with metal a little firmer again too. Decent option interest currently in play today/tomorrow.USDCAD: Another cap at 1.2130 and another retreat into 1.2080 amid the CADJPY demand and firmer oil prices again along with softer USD tones generally.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.40 BST