Jury still out as another week of unknowns gets underway
Monday 11 May 2020
We've seen a little risk-on sentiment and some more JPY supply as the new week gets underway after Friday's awful US jobs data saw a belated reaction with USD supply notable late in the European afternoon amid thin liquidity with London markets closed for VE Day remembrance.
Some correction underway this morning as the jury remains out.
GBPUSD burst up through 1.2380-1.2400 late on Friday to post 1.2467 after holding 1.2350 as per my Tweets but retreating this morning having capped at 1.2450. Re-sells duly made upstairs and some profit taken on retreat into 1.2380 and 1.2360 just now as I tweeted but staying core short. Confusion over Boris Johnson's latest lockdown exit strtegy on TV last night surely not helping inspire confidence. EURGBP has held 0.8700 and now posting 0.8757 as I type amid the GBPUSD retreat.GBPJPY found good support around 131.80 amid some better risk and that late GBP surge on Friday but failing above 133.00 again.
I stay poised to sell GBP rallies overall and buy back in the dips as ever but patience continues to be a virtue and entry level key as always.
USDJPY has made good progress higher amid some better risk- sentiment and USD buy backs but rally re-sells duly placed at 107.20 as per my earlier tweet as we're ranging still. EURJPY also found dip support but failing at 116.20 atm as EURUSD retreat. EURUSD had a quick look at 1.0880 on Friday's surge but now back down to 1.0810 as I type where we also have 1.1bln expiries today.USDCHF held 0.9680 again on its latest retreat as EURUSD rallied with EURCHF still holding 1.0520 amid the SNB still supporting as made blatantly clear by SNB head Jordan in interviews over the weekend.
AUDUSD rallied well on the USD retreat and a little better risk sentiment to look at 0.6560 again but retreating now amid the general USD demand and uncertain risk sentiment. USDCAD is trying to break up through 1.3960 amid the USD demand/variable oil after holding 1.3900.
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Let's continue to be careful out there in all things. Staying safe must be our main priority still. Make sure you get some rest over the weekend.
Interbank rates: 08.40 BST