Jury still out as markets wait on BOE and ECB today
Brexit and trade talks are still near the top of the list but today sees the latest interest rate/monetary policy decisions from the Old Lady and ECB. While markets are not expecting any changes to rates it will be the general tones and any future guidance that algos and traders will feed off as ever.
GBPUSD meanwhile has looked at both ends of the prevailing 1.2980-1.3050 range.Sellers still poised between 1.3050-60 with sizeable option interest in play then 1.3080,1.3100,1.3120 and 1.3150 still. Immediate demand around 1.3020 again then into 1.3000, 1.2980 and 1.2960 still. Good two-way action being seen for both sellers and buyers but I prefer to take advantage of the rallies still.Brexit on the agenda again today with May @ Co laying out some more contingency plans for a hard deal.
EURGBP remains tightly bound but we might reasonably expect some fun today with both the BOE and ECB in play. Sellers poised into 0.8930 still and 0.8950 with larger between 0.8980-00.Immediate demand around 0.8900, 0.8880 still then 0.8850, 0.8820 and 0.8800
EURUSD also continues to range while we wait on the ECB at 12.45 BST and the all impoortant press conference at 13.30 BST.Some immediate option contract related demand between 1.1600-20 then 1.1580 with more option-led support at 1.1550 and 1.1530, with sellers around 1.1650-60, 1.1680 and 1.1700 still. More sellers poised at 1.1720 and 1.1750 should we get up that far.
USDJPY continues to find demand into 111.00 and sellers now between 111.50-60 where large option interest rolls off today then 111.80 and 112.00. Jury remains out on USDCHF too for the moment with EURCHF finding a few sellers again too. Dip demand still expected but sell interest remains poised around 1.1300 and 1.1320 with USDCHF sell interest still at 0.9760 and 0.9780. Buyers at 0.9680 and 0.9650.
AUDUSD enjoyed a good spike through 0.7130 resistance to post test 0.7200 on some positive US/China trade talk. Some sell interest around 0.7200, with large option expiries in play tomorrow, then 0.7220 and 0.7250 still. Buyers now around 0.7150-60,then 0.7130 and 0.7100. USDCAD has fallen again to post lows of 1.2993 also on increased trade deal expectations. Buyers now into 1.2980 which remains pivotal and 1.2960.Sellers around 1.3030 then 1.3050 and 1.3080.
Fickle Forex markets ever prevailing, so get your orders in to take full advantage of these moves.
I won't be around at my desk for the BOE/ECB decisions as I have a prior commitment to help take 17 breast cancer patients (4 of whom are unlikely to see Xmas) to nearby Hever Castle for the day. The charity is one that we supported with our 3Peaks/450 cycle ride in May and today sees some of that money put to very good use. Thank-you so much to everyone that donated.
Make the most of your day today however you spend it. Carpe Diem.
Interbank Rate 08.45 BST GBPUSD 1.3038 EURUSD 1.1617 EURGBP 0.8909 GBPEUR 1.1223 USDJPY 111.47 USDCAD 1.3003 USDCHF 0.9698 GBPAUD 1.8140 GBPCAD 1.6950 GBPCHF 1.2643 GBPZAR 19.3548 GBPHKD 10.1083 EURHKD 9.0068