FX pairs ranging still amid variable risk plays
Monday 13 July 2020
Markets ever fickle anbd fragile as we start another week with COVID and US-CHina tsnsions still to the fore but risk sentiment still variable/steady overall so we can still expect FX pairs to see some good two-way business.
GBPUSD found support into 1.2580 but equally sellers above 1.2665 again as the recent range continues to play out.EURGBP remains tightly bound but posted new recent lows of 0.8938 on Friday before rebounding to 0.8970 as GBP retreats this morning. Good demand now at 0.8945-50 again then 0.8925-30 still but sellers poised between 0.8985-and 0.9000.GBPJPY enjoyed another run up to test 135.60 but failed this time at 135.40 and we've back down to look at 135.00 so far amid some slightly softer risk plays.
I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever but patience continues to be a virtue and entry level key as always. I still expect to continue seeing some dip demand but cross-flows, risk sentiment and Brexit will continue to see a mixed bag as we've been witnessing.
USDJPY found support into 106.60 and now popping above 107.00 on some general USD demand as Europe gets underway but Yen sellers still tempering rallies.EURJPY similarly found support at 120.40 but capping around 121.20 so far amid the variable risk. EURUSD is ranging too after holding 1.1275 this time around but equally finding sellers above 1.1300 and re-sells duly placed from Friday's buy-backs. Rinse n repeat. USDCHF has held 0.9380 and now looking to test 0.9420 again as EURUSD retreats and EURCHF finds the usual dip demand but sellers at 0.9430 still lurking. The SNB will be ever vigilant in the dips still though.
AUDUSD also ranging tightly between 0.6935-85 amid the latest COVID resurgence in Melbourne and the threat of Chinese economic retaliation ever lurking but still finding some dip demand to match the sell interest.USDCAD also trading tightly still after failing above 1.3620 again amid the variable oil price and risk plays but holding 1.3560 as I type .
I wish you good trading and let's continue to be careful out there in all things. Staying safe must be our main priority still.
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