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  • Writer's pictureMike Paterson

FX pairs up and down but ranging still

Friday 21 August 2020

Lots of good two-way business in the last 24 hours but it's the Pound that's mostly taken line honours amid softer risk tones and variable USD sentiment, albeit giving up quite a few of those few gains as I type.

UK Services PMI data just out was better than expected on the headline news but failed to give the Pound a further lift as we waited on a Brexit presser from Barnier at 09.00 GMT which  brought little joy as also expected.

GBPUSD rallied strongly yesterday reversing the retreat that was also overdone in my expectations and with EURGBP holding below 0.8980 we saw another test of 1.3255-60 but now dropping back through 1.3200 to test 1.3180.EURGBP capped around 0.9060 and has seen a steady decline down to 0.8945 amid the weaker EUR/stronger GBP double whammy but now back testing 0.8980 again as GBP gives up some gains. GBPJPY duly held 138.60 and rallied to test 140.00 yet again before retreating to 139.00 as I type amid the softer risk tones. G

I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever.Patience will continue to be a virtue and entry level key as always. I still expect to continue seeing dip demand though as we continue to range.

USDJPY duly fell back through 106.00 on the softer USD/risk combo and tested support at 105.50.

EURJPY capped at 125.60 and seen a steady fall to 124.60 amid the softer risk and general EUR retreat. EURUSD has seen a good 1.1800-85 return trip and two-way pips to be had again if not greedy amid some generally softer EUR tones still with EURCHF, EURGBP and EURJPY all lower too.USDCHF capped at 0.9150 but held the pivotal 0.9060 in its retreat and now 0.9110 as EURUSD retreats but rallies tempered by EURCHF falling too but with the SNB ever lurking.

AUDUSD held 0.7130 on its latest retreat but equally failed above 0.7200 amid softer risk/AUDJPY selling. USDCAD capped into 1.3250 this time on the softer USD/steady oil combo and 1.4bln option expiries today but finding support at 1.3160 and now testing 1.3200 as I type.

Markets are ever-fickle so don't forget to contact me if there's areas of trading these markets  that you might need some further help with.

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. Have a great week-end.

Interbank rates:  09.15 BST

GBPUSD   1.3208

EURUSD   1.1815

EURGBP   0.8950

GBPEUR   1.1170

GBPAUD   1.8380

GBPCAD   1.7427

GBPJPY   139.30

USDJPY   105.51

EURJPY   124.64

EURCHF   1.0753

AUDUSD   0.7181

USDCAD   1.3198

USDCHF   0.9106

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