Greenback under pressure still
Monday 19 April 2021
USD selling notable again on softer US treasury yields as we begin another week and the Pound is feeling some love still after a move higher on Friday helped by the EURGBP retreat and steady risk sentiment.
That PBOC EURUSD DNT option interest and barrier at 1.2000 is now history in the past 40 minutes while I've been typing this and EURUSD jumps quickly to post 1.2017 so far helped understandably by a few stops being triggered and helping to push EUR pairs higher too. More sellers poised into 1.2030 so let's see if it has real appetite amid the softer USD tones.
GBPUSD: Now holding 1.3810 amid the ongoing USD supply after after capping around 1.3830.Sellers lurking at 1.3880-85 then larger at 1.3900.EURGBP: 0.8720 proved a step too far on Friday with EURUSD holding 1.2000 and the solid retreat into 0.8630 helped underpin GBPUSD. Seeing a rally now to 0.8660 helped by that break of 1.2000 but not flying away as sellers remain poised. GBPJPY: Found support at 150.00 but unable to break 150.60 since and in retreat as USDJPY falls below 108.30
I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats. Nice when it happens though.
EURUSD: 1.2000 finally broken this morning after holding 1.1940-50 again but sellers lurking around 1.2030. USDJPY: Now broken down through 108.30-50 support lines and testing 108.00. I remain bearish overall and will continue to sell rallies. Current shorts once again a nice hedge versus GBPUSD shorts.EURJPY: 130.50 again providing a cap with 129.70 now the support line to test 130.10 after the EURUSD jump through 1.2000.USDCHF: Capped at the pivotal 0.9220-30 area and now broken down through the 0.9180 support as EURUSD rallies and EURCHF capping at 1.1030 too.The SNB ever watchful and ready to help. EURCHF: 1.1000 hOlding again in the latest retreat helped by the SNB shadow but rally sellers still poised
AUDUSD: 0.7700 held then 0.7730 as USD supply kicked in and helped by large option interest there today. A test of 0.7780 underway as I type. USDCAD: Capped into 1.2530 in Asia and now falling to 1.2480 amid the softer USD/underpinned oil tones again.
Southend played well on Saturday but once again failed to score and had to settle for a point which is two less than we needed. Not looking good now with 4 games to go and tomorrow night's game versus relegation and Essex Colchester remains a must-win affair.
Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good week everyone.
Interbank rates: 08.38 BST