Jury still out as markets wait on NFPs
Friday 4 September 2020
Good two-way business still prevailing with markets unsure whether the USD demand will continue after US NFP jobs/wages data today or the recent correction from week's selling is already at an end.
As always with any data at the moment we'll take the figures with a pinch of salt as the COVID fallout remains a moveable feast but as always be poised with entry/exit levels and let the algos do the work.
GBPUSD yesterday had a look below 1.3250 but since failed at 1.3310 on the subsequent bounce. EURGBP extended its bounce to post 0.8934 but couldn't sustain those gains through 0.8925 and now testing 0.8900 again amid the general EUR-neg vibe. GBPJPY continued its retreat to 140.50 but finding some decent support down there and posting 141.25 with core pair dip demand and better risk in evidence.
I stay poised to sell GBP rallies overall 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 expect to continue seeing dip demand though should we retreat further.
USDJPY continues to range with 106.00-106.50 the close touch now amid the generally variable risk and USD combo plus large option expiries. EURJPY has capped at 126.00 and tested 125.30 again but since found support at 125.60 amid the better risk tones and core pair dip demand. EURUSD found support at 1.1800 and broke up through those 1.1830 option expiries to take out the 1.1850 offers but struggling to make further progress ahead of today's NFP release and with lsrge expiries at 1.1850 helping to contain.USDCHF has found a new base at 0.9080 (probably SNB still) after retreating from 0.9130 as EURUSD rallied but equally now failing into 0.9120.
AUDUSD has finally broken down through 0.7280-00 but holding 0.7250 for the moment as testing 0.7300 again with some AUDJPY buying as the jury remains out on the extent of this USD demand while USDCAD broke up through 1.3100 and 1.3150 amid the firmer USD tones yesterday but since falling to from whence it came at 1.3080 in the return trip. Also helped by some CADJPY demand on the better risk tones this morning.
Markets are ever-fickle so don't forget to get in touch if there's areas 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: 08.55 BST