Greenback grabbing notable again
Wednesday 12 August 2020
The US Dollar has made some decent gains and along with better risk sentiment still prevailing we've seen some good moves in FX pairs in both directions.
Gold and silver both continued their retreat but found some expected dip demand given the extent of the fall while equities and oil both remain underpinned amid the scenario of ultra-cheap money swashing around the system with the likelihood of more to come.UK GDP data this morning was dismal as expected but some rays of hope ahead and GBP pairs shrugging it off.
GBPUSD has had another dip to look at 1.3020 amid the general USD demand but rallied since the GDP data testing 1.3060 as I type. EURGBP had another look at the good 0.8980 support area but failing at 0.9005 so far on the rally since.GBPJPY found support at the higher 138.80 level and finally broke through 139.25 and testing 139.50 amid the better risk and dip demand on core pairs.
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 found good support at 106.00 then 106.40 and marching on to post 106.80 this morning amid the USD demand/JPY risk-on supply doiuble whammy.EURJPY found support at 124.80 and enjoying the better risk tones/USDJPY demand to post 125.50 as I type. EURUSD has had another soggy 24 hours to break down through those 1.1720-25 bids to post fresh recent lows of 1.1712 amid the general USD demand but bouncing to 1.1750 as I type.USDCHF enjoyed another decent rally to look at 0.9200 this time as EURUSD retreated and with EURCHF still ranging with the SNB still lurking but now back down to 0.9150 as EURUSD rallies.
AUDUSD duly failed above 0.7180 with Victoria COVID lockdown still in focus and a bigger retreat this time into 0.7100 amid the USD demand. USDCAD has found support at 1.3270 amid the USD demand but capped at 1.3350 and now testing 1.3300 as I type amid firmer oil price and some CADJPY demand again.
Markets are ever-fickle so don't forget to get in touch if there's areas of trading these markets that you might need some further help with.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 09.10 BST