Jury still out amid variable risk tones still.
Friday 25 September 2020
Lots of two-way business in the past 48 hours amid variable risk and USD sentiment with lots of Central Bank chatter but markets are really none the wiser as another week comes to a close.
GBPUSD held 1.2680 then 1.2700 and then 1.2720 as the Greenback gave up some gains and EURGBP slid back again but the rally is failing above 1.2800 so far this morning. EURGBP found itself in steady retreat to 0.9112 from 0.9180 but then rallied as Bailey once again refused to rule out negative interest rates but that rally capped at 0.9160 and now the latest line in the sand with support bulding at 0.9100-10.GBPJPY found support at 133.80 as risk sentiment turned a little positive and USDJPY had good buying interest at 105.00 and now testing 134.80 as I type.
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 entry level key as always. I still see dip demand though with markets still in a state of uncertainty overall.
USDJPY remains underpinned for the moment as risk turns a little more positive but sellers around 105.50 including me helping to cap. EURJPY found support at 122.50 amid the general JPY supply and dip demand on core pairs but failing above 123.00 so far.EURUSD ran into decent demand at 1.1625 but unable to hold gains above 1.1680 amid the variable USD tones. USDCHF underpinned still by SNB and yesterday's confirmation that it will continue to intervene but ranging 0.9200-0.9300 atm:
AUDUSD found support at 0.7020 and has now tested 0.7085 helped by AUDJPY demand and softer USD tones while USDCAD capped above 1.3400 amid the softer Greenback, firmer oil and risk combo with CADJPY demand notable but demand into 1.3330-50.
Markets are ever-fickle so don't forget to contact me if there's areas of trading these markets 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. Have a great week-end.
Interbank rates: 08.28 BST