FX pairs ranging still as uncertainty continues
Tuesday 29 October 2019
Same old scene as Johnson goes for another General Election attempt after failing yesterday in the wake of the EU granting a 21 Jan flex-tension as widely expected. Elsewhere risk sentiment seems steady but other currencies also in "wait and see" mode.
GBPUSD is still unable to hold above 1.2860 despite a small rally to 1.2871 but equally finding support for the moment into 1.2800 still.Caution needed both sides of the coin as the next stage in the Brexit fiasco plays out. EURGBP also tightly bound as GBP makes it mind up and EURUSD also rallies then retreats again. Don't forget the usual month-end EURGBP demand in play this week.GBPJPY also continues to see good two-way trading amid the varying GBP/risk sentiment combo.
I will continue to rally-sell GBP as my preferred strategy overall too amid the ongoing Brexit uncertainty but always happy to buy back in the dips still. Still a decent case for GBP longs in the dips if this tight range continues. A General Election is Pound supportive in theory if you trust in the polls and feel another Tory government might deliver something positive for the UK whatever kind of Brexit might be forthcoming. That's no given imho. In essence the general uncertainty and can kicking continues and that's still Pound negative. Current price action would appear to agree with that too.
EURUSD is having another look at 1.1075-80 support/bids after failing above 1.1100 again. USDJPY remains tightly bound yet again, underpinned but failing above 109.00 helped by large expiry interest today between 109.00-10. BOJ meeting this week on the radar too.USDCHF remains underpinned as EURUSD retreats with EURCHF still supported too but going nowhere in a hurry.
AUDUSD has found a little support from RBA Lowe's upbeat assessment of recent rate cuts but the pair still has sellers poised while USDCAD remains on the back foot but also tightly bound still.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Don't forget I offer 1-2-1 mentoring if there's areas of trading this latest volatility, or how to make best use of the order boards and expiries that you might need some further help with.
Have a good day out there one and all.
Interbank Rate 08.23 GMT