Greenback under pressure again
Tuesday 9 February 2021
Risk sentiment still remains firm overall as equities and oil stay underpinned, and Bitcoin continues its march higher with a bit of help from Mr Musk. US Dollar has turned lower lower again amid softer tones to the US economy and hopes increase that further stimulus is needed.
As if you need reminding I'll repeat again that the Forex jury remains out amid all the noise so keep playing what's in front of you and don't over analyze or assume anything.
GBPUSD held 1.3680 this time around again and finally cleared 1.3750 after a few attempts as the renewed USD-negative tones accelerated to post highs of 1.3788 so far.EURGBP yesterday failed into 0.8800 (GBPEUR 1.1365) but equally finding support at 0.8760 (GBPEUR cap at 1.1415) and helping to temper GBPUSD still despite it's USD-negative led rally. GBPJPY found a decent cap at 144.80 then 144.60 as core pairs found rally-sellers but as importantly we've seen continued JPY demand generally that I've been warning about.
I still have a naturally bearish stance on GBP overall and remain poised to sell into rallies but respecting dip demand still with price action ever fickle. Equally a case still for going long in the dips therefore as we continue to range. Patience and not getting greedy remain key.
USDJPY has finally broken down through 105.30 and 105.00 to post lows of 104.70 so far still tempered by ongoing year-end JPY repatriation by corporates as well as the general USD supply. EURJPY failed into 127.20 amid the general JPY supply but holding 126.50 for the moment. EURUSD found good support this time at 1.2020 and now taking out 1.2100 as I type amid the general USD supply.USDCHF found a good cap at 0.9020 and duly retreated as EURUSD rallied but has held above 0.8940 this time so far with the SNB ever watchful with EURCHF still holding 1.0800.
AUDUSD found support at 0.7650 this time around with help from those large options I highlighted yesterday as well as the softer Greenback tones. Now testing 0.7730. USDCAD found a good cap this time at 1.2780 where we had some offers lining up then 1.2750 as oil price rallied and the Greenback fell but holding 1.2720 so far.
Amazing win by England's cricketers in India and well worth waking up early for over the past 5 days ! Tonight Southend play at Newport but I'm thinking a win double today across the two sports might be a stretch too far.....
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.37 GMT