Further panic in evidence amid increasing Coronavirus fears
Friday 28 February 2020
The panic/reassessment continues and we've seen further sharp losses for equity markets, Gold underpinned and safe-haven plays to the fore again in Forex.Asian bond markets have seen their worst week since 2014.Final month-end flows in play today too so caution advised as ever, particularly into the 16.00 GMT Lodon fix. Lots of talk about the net flows being USD-positive this time.
GBPUSD failed to get back above 1.2920 after that Brexit news dip to 1.2872 but continues to hold 1.2850 for the moment. EURGBP demand once again helping to push GBPUSD lower too along with the on-going GBPJPY and GBPCHF supply.
EURGBP continues to find support and now blown through 0.8500 to post 0.8575 (GBPEUR down to 1.1662) amid the month-end demand and increased clamour for EUR generally given its current funding status which has seen EURUSD up to 1.1048. GBPJPY has seen a steady decline to 139.82 amid all the risk off sentiment and selling on core pairs.
I remain GBP bearish overall and still look to sell rallies.
USDJPY failed into the 110.30 pivot yesterday and has made an extensive but steady decline to 108.60 while EURJPY remains tightly bound again as EURUSD continues to rally strongly amid the softer USD and EUR demand generally but with sellers still ever-ready.EURUSD found itself contained a little by those large expiries but Euro bulls were not to be denied and we've seen a break of 1.1000 to now post 1.1052 as I type. USDCHF has also tumbled to post new recent lows of 0.9610 as EURUSD rallies with EURCHF again holding above 1.0600 and rallying further to 1.0667 with the SNB casting their eve-present shadow.
AUDUSD has also retreated to 0.6517 after failing into 0.6600 yesterday amid renewed AUDJPY and AUDEUR selling while USDCAD has broken above 1.3400 now on the softer oil price/risk-off CADJPY selling again and holding the gains to post 1.3455.
Fickle Forex markets ever prevailing so be ready to jump on moves with your entry/exit levels and orders as always.
Don't forget that I offer 1-2-1 mentoring if there's areas of trading these tight ranges, or how to make best use of the order boards and expiries, that you might need some further help with.
Southend away at Oxford tomorrow as our soggy sorry season continues. Suffice to say we are not expected to come away with a result but we'll never say never !
Have a good day/week-end out there one and all.
Interbank rates: 08.42 GMT