FX pairs ranging still as another week opens
Monday 18 March 2019
Groundhog Day/week in the UK and around the globe as another week in this ever fickle/fragile world of Forex gets underway.
We've seen GBPUSD hold 1.3200 and rally only to fail in making headway above 1.3300 so far as the jury remains well and truly out amid May trying once again to get her Withdrawal Agreement with EU through parliament this previously.EURGBP has similarly held 0.8500 support (GBPEUR resistance/sellers at 1.1765) in retreat amid the latest GBP demand with large option expiry interest rolling off there today.
I remain GBP bearish overall and continue to rally-sell as my preferred strategy and buy back in the dips still but I continue to see good two-way business as May tries once again to get her deal through parliament. I repeat also that political risk is huge in all scenarios and for me negates much of the No Brexit positive tones.Seems like markets are now taking some of that scenario on board but Pound still finding dip buyers overall for the moment.
EURUSD continues in tight range mode with support from today's large EURGBP option interest and variable EURJPY direction amid uncertain risk sentiment still. USDJPY is still tightly bound helped by variable risk sentiment and ongoing GBPJPY supply/demand and we've seen a dip back down to test 111.30.
USDCHF also remains underpinned/tightly ranged amid the steady EURUSD and EURCHF while AUDUSD also continues to find dip buyers after the failure into 0.7000 and softer USD/variable risk-on sentiment (AUDJPY demand) and we've now cleared out the 0.7100 resistance.USDCAD remains on the back foot with firmer oil prices and CAD/JPY dip demand still helping to put a bid into the Canadian%.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
As always I wish you good trading.Let's continue to be careful out there and don't get greedy.
Woeful display by the currently very soggy Shrimpers of Southend and we're now in a serious battle to avoid relegation. Fine line (just 2 points) between drop and survival though atm so we'll keep belieiving of course. Congrats to Wales on a wonderful 6 Nations Grand Slam but what a bonkers/riveting game between England/Scotland eh?
Have a good day/week one and all.
Interbank Rate 07.40 GMT