FX pairs ranging still as the uncertainties remain
Tuesday 12 May 2020
I said yesterday the jury still remains well and truly out and so its proved with some more range trading as markets and algos continue to process the COVID-19 impact.
Some weaker Chinese data and some retaliation measures imposed on Australia for some recent virus comments from PM Morrison sent the A$ lower but has recovered some poise since. US/China trade talk concerns also still in the mix.
BOE Broadbent just out with some dovish tones per my tweet as I finish this report but nothing we don't already know.
GBPUSD continued its retreat yesterday but once again held 1.2280 after breaking down through 1.2320 from the 1.2360 area cap again. EURGBP duly held around 0.8800 (GBPEUR support 1.1365) but now finding a line in the sand at 0.8750 (GBPEUR sellers 1.1430). GBPJPY found good support around 131.80 yet again and since at 132.20 after capping around 133.00 again amid some variable risk. Bids building at 132.20 and holding the Broadbent dip.
I stay poised to sell GBP rallies overall and buy back in the dips as ever but patience continues to be a virtue and entry level key as always.
USDJPY failed into 107.80 again and further rally re-sells duly placed as we're ranging still. EURJPY also found dip support but failing at 116.50 on the rally atm. EURUSD duly held 1.0800 yesterday helped by those expiries but we did see a later dip to test 1.0780 again before bouncing into 1.0830. USDCHF capped at 0.9750 in Asia as EURUSD rallied from 1.0780 with EURCHF still holding 1.0500-20 amid the SNB support.
AUDUSD fell through the 0.6480 support helped by those Chinese relaliatory measures but found support at 0.6430 and now back up through 0.6480 and proving its current resilience overall.USDCAD held 1.3950-60 yesterday amid the USD demand after holding 1.3900 but capping above 1.4060 as USD sellers return and oil price firms.
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Let's continue to be careful out there in all things. Staying safe must be our main priority still. Make sure you get some rest over the weekend.
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