Greenback still finding sellers
Thursday 26 November 2020
Some good two-way business to be had again in the last 24 hours but overall we continue to see some USD supply prevailing apart from the month-end flows.
US corporate month-end USD demand/repatriation for tax needs still in the mix along with the usual month-end equity hedge related USD out-flows and hence we find ourselves in tight ranges still, quite apart from any lack of direction elsewhere.
US hols today/tomorrow. Sometimes that brings volatility due to lack of liquidity but we never can predict. Those month-end flows have to be completed regardless.
GBPUSD remains in a slightly higher 1.3300-1.3400 range while EURGBP has held the 0.8900 area again after failing into 0.8930 once more and our range seems to be 0.8885-0.8935 atm as core pairs move up/down in similar pattern on the variable USD flows. GBPJPY capping around 139.80 again on the GBP/softer risk retreat.
I stay poised to sell GBP rallies as my preferred side and buy back in the dips as ever.Patience continues to be a virtue and rally-selling in GBPUSD is still bringing some reward but entry level key as always. Definitely still expecting dip demand as I've warned for a while now. Brexit still the large elephant in the room.
USDJPY has capped at 104.60 this time around but finding support at 104.20 again while EURJPY held 124.00 and rallied to test 124.60 amid the better risk but in retreat now as JPY demand returns and core pairs find rally sellers again. EURUSD found support this time at the pivotal 1.1880 area but equally failing at the freshly extended high of 1.1940.USDCHF once again has tested recent highs and lows as the variable USD and EURUSD tones persist with EURCHF softer but underpinned with the SNB still ever watchful.
AUDUSD held 0.7325 on the retreat back down through 0.7340 again but equally capping at 0.7380 as the tight ranges continue. USDCAD finally broke down through 1.3000 on the general USD supply but holding 1.2980 as I type amid the variable USD/oil tones this morning.
Markets are ever-fickle so don't forget to contact me if there's areas 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: 08.45 GMT