Jury still out after mixed US data
Monday 29 April 2019
Better US GDP headline data on Friday but softer tones in the detail saw some swings and roundabouts in price moves but it's another guessing game as the new week gets underway.
GBPUSD fell on the headline figures to test weekly lows around 1.2875 again but has since rallied to test 1.2950. EURGBP selling with the ongoing general EUR supply continues to provide GBPUSD dip demand but there's more support at 0.8620 as I've highlighted and that's helping to cap Cable rallies again along with the usual rally-sell supply.
EURGBP has been tightly bound but drifting into the 0.8620 support as EURUSD continues to look soggy despite also rallying from Friday's post-data lows. A reminder that we don't always see big EUR rallies on the BUBA month-end demand but we know at least that the downside falls are normally contained.
I remain GBP bearish overall and continue to rally-sell as my preferred strategy and buy back in the dips amid the Brexit debacles and general USD demand currently prevailing. Plenty more noise to come in the weeks ahead and the algos will continue to feed off the headlines.
EURUSD fell after the GDP data to test 1.1100 barrier option interest again but since recovered to post 1.1166 highs. USDJPY dully held 112.00 yet again post-GDP and fell back to test 111.50 support as we head into the long Japanese Golden Week holiday.
USDCHF remains underpinned but capped as EURCHF found sellers again amid the general EUR retreat and wobbly risk but finding dip support around 1.1350 again. AUDUSD has found some decent dip support after taking out the 0.7000 barrier option last week and has now also benefited from the latest USD supply post GDP to rally to 0.7061 with AUD finding some general support.USDCAD has retreated again despite softer oil prices as the Canadian $ continues to find a bid after last week's post BOC sell-off.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Saturday saw 1115 of us make a 13 hour return trip up North to face Rochdale only to find that the Shrimpers of Southend seemingly failed to make the same trip, let alone with the same level of enthusiasm/ appetite. We lost 1-0 and now need to win our last game against promotion-chasing Sunderland to stay up. We'll keep believing but not done ourselves any favours in recent weeks. Sad times but hey worse things out there in the world eh?
Have a good day/week one and all.
Interbank Rate 08.25 BST