Greenback grabbing continues as markets wait on FOMC
Wednesday 28 April 2021
More USD demand notable with USDJPY back above 109.00 amid higher US bond yields and some better risk JPY selling too but most other pairs still ranging ahead of tonight's US Federal Reserve FOMC decision at 18.00 GMT and presser at 18.30 GMT. Markets expecting a hawkish Fed but they have been more dovish/cautious in recent times so let's see what happens today.
End of month signals still point to some USD selling but plenty of time for that to kick in as I said yesterday but keep an eye on the 4pm London fix today as we trade the EOM Spot date.
GBPUSD: Finding a cap at the 1.3925-30 offers/resistance yet again so I hope the steer helped but still holding 1.3860.EURGBP: Holding around 0.8680 again and now back above 0.8700 and delicately poised still as core pairs continue to range.GBPJPY: A good base at 150.50 now amid the better risk tone JPY supply and core pair demand but sellers at 151.30 prevailing atm.
I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats. Caution advised still as equally a case for buying dips still atm.
EURUSD: A good hold of 1.2050-60 again after another failure into 1.2100 and some pips banked again. Lots of option interest today.USDJPY: The rally continues and looking at 109.00 as I type. Overall I do think we retreat again but let's see what the Fed offers to the equation.EURJPY: 130.80 finally broken and now 131.00 becomes a good base with core pairs underpinned amid better risk tones. Sellers poised but coming second for the moment.
USDCHF: Found support at 0.9140 again but failing at 0.9180 as EURCHF remains retreats off the new highs but with the SNB ever watchful and ready to help. EURCHF: 1.1030 still providing a base helped by the SNB shadow but the sellers at 1.1080 prevailing atm
AUDUSD: Failing at 0.7780 and now dipping into 0.7730. Some option interest in play again today and should help to contain until expiry.USDCAD: 1.2380 still holding but capping at 1.2420 now and retreating again amid the firmer oil tones and CADJPY demand still.
Southend's fate still hangs in the balance after last night's fixtures and mathematically we can stay up if we win both our last two games by a bucket load of goals and others lose. We'll keep hoping.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.22 BST