Forex pairs still ranging
Monday 31 May 2021
Some fun and games on Friday amid US PCE data and moving bond yields with decent moves and two-way pips to be had if you didn't get greedy. At the end of it all though we're still ranging as we start another week and almost a new month (where did May disappear to?) with the UK and US on holiday today. Week-end headlines gave the Yuan a stir
There is a 4pm London fix but month-end flows are generally considered to have been done but we might yet see some more US corporate USD demand as I tweeted about on Friday. Either way liquidity will be thin so be careful if you are trading. FYI I'm not at my desk once I send this out.
Jury on the Greenback still out so ignore the noise and, 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 and discipline are key too of course.
GBPUSD: A good hold of 1.4140-50 on Friday and pips banked as per my tweet before I headed out. Failure to hold above 1.4200 was a good signal for some re-sells.EURGBP: Once again 0.8580-85 holding the retreats but sellers poised at 0.8620 so good two-way pips still whatever your bias. GBPJPY: Still a prime mover but failing above 156.00 with core pairs both capping. Dip demand still expected though while risk sentiment remains ok.
I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats.
EURUSD: A good hold of 1.2130-35 on Friday and some pips banked per my tweet before I went out. USDJPY: Pips banked in the latest retreat to 109.60 after capping at 110.20. EURJPY: 133.60-75 now forming a decent base amid the core pair dip demand and general JPY supply but sellers lurking around 134.00 again. USDCHF: Holding 0.8980 on the latest retreat as EURUSD caps again and with SNB ever vigilant/helpful but equally sellers now at 0.9030. EURCHF: Capped into 1.100 now but some general EUR dip demand and SNB shadow keeping it underpinned now at 109.50.
AUDUSD: Underpinned at 0.7680 sgain but sellers lurking at 0.7750-65 still. USDCAD: Still holding 1.2060 but unable to get back above 1.2100 with rallies being tempered by CADJPY demand/ firmer oil prices.
Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good bank holiday Monday everyone.
Interbank rates: 08.45 BST