Fragile risk sentiment still prevailing overall
Tuesday 25 June 2019
We've seen more general USD supply along with Yen and Swiss Franc demand as risk sentiment remains fragile, as I have long warned, amid US-China trade talks, G20 this weekend and Middle East tensions to name but three. A little bit of correction going on in early Europe but not enough to break current trends.
GBPUSD held above 1.2700 on the retreats and has been up to test the 1.2780-85 sell interest helped by the USD supply and EURGBP failing at 0.8960 but since capped by the offers up there and some initial GBPJPY supply. Some GBPJPY and GBPCHF demand this morning helping to underpin for the moment. EURGBP had a look at 0.8950-60 yesterday amid the EUR demand but has since retreated and remains tightly bound. GBPJPY has found some support around 136.00 again but sellers remain poised with Yen demand still notable overall.
I remain GBP bearish overall still and will continue to rally-sell as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout.
EURUSD finally took out the barrier option interest at 1.1400 but failed into the next trance of sell interest at 1.1420 and we've seen a general EUR retreat amid falling German bund yields but still running into dip demand. USDJPY has given in further to the ongoing USD supply/JPY demand combo to post fresh lows of 106.78 before finding the usual dip demand after such a fall.USDCHF remains under pressure on the USD supply/CHF demand and has had a test of 0.9700 but rallied well since to post 0.9752 and we can safely assume the SNB is once again lending a helping hand in the dips.
AUDUSD remains underpinned helped by the rampant Gold rally amid the USD weakness/fragile risk sentiment but sellers still remain poised and we've seen some AUDNZD selling with the RBNZ expected to keep interest rates on hold tonight/tomorrow. USDCAD had a look above 1.3200 only to retreat once again on the renewed USD selling/firm oil price but has found a 1.3170 base for the moment.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
I hope my updates/tweets are helping.Feel free to contact me about discounted 1-2-1 mentoring rates if you need some clarity on current moves.
Let's continue to be careful and don't get greedy.
Have a good day out there one and all.
Interbank Rate 08.34 BST