Greenback supply notable as risk sentiment continues to wobble
Friday 21 December 2018
Equity markets tumbling and Trump throwing his toys out of the pram in various directions have both helped markets into a pre-Xmas risk-off wobble.
GBPUSD held around 1.2700 then retreated to test 1.2620-30 but with US$ selling prevailing amid the somewhat unsettled US political scene we're back up to 1.2693 as I type. The BOE kept rates on hold with the same 9-0 vote count but lowered some GDP forecasts with Brexit still providing their main cause for concern understandably. I remain GBP bearish overall and happy to jump on rallies still.
EURGBP remains underpinned still with month-end demand looming too while EURUSD has rallied on the USD supply and general Euro demand to post 1.1485 but large option expiries today at 1.1500 today helping to cap the rally so far.
USDJPY has tumbled further on the USD supply/JPY safe-haven demand double whammy to test 110.80 but since been back to test 111.50 only to retreat again as European trading got underway this morning with large option expiries in play there today too.USDCHF has also fallen further to test 0.9850 but supported by EURCHF finding dip demand again into 1.1280 with the SNB seemingly ever-watchful.
AUDUSD is clinging to 0.7100 with large option interest of its own rolling off today while USDCAD has broken back up through 1.3500 on softer oil and CADJPY selling.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and don't get greedy.Get your orders in to take full advantage of these moves.
Tomorrow the mighty Shrimpers roll out again at the hallowed Hall looking to consolidate on last week's well-deserved win. A key Xmas programme now looms so bring it on!
I'll be updating next week but not 25th or 26th so in case some of you are heading away now for the festive break can I thank you for your business in 2018 and wish you all seasons greetings and a successful 2019. Contact your rate providers for their opening hours.
Have a good week-end one and all.
Interbank Rate 07.55 GMT GBPUSD 1.2677 EURUSD 1.1463 EURGBP 0.9042 GBPEUR 1.1057 USDJPY 111.29 EURJPY 127.55 EURCHF 1.1313 USDCAD 1.3506 USDCHF 0.9870