Jury still out in these ever-fickle markets
25th June 2020
Some notable USD demand and also generally risk-off scenario overall as equities and oil continue their retreat amid on-going COVID-19 concerns and the US-China trade spats. Chinese markets off today and tomorrow creating tight ranges in Asian trading.
GBPUSD traded 1.2480-1.2530 for a lot of the day but then broke lower amid that USD demand/softer risk combo and we've been down to test 1.2400 before bouncing to test 1.2450-60 this morning.EURGBP failed at 0.9070 (GBPEUR support 1.1025) but demand around 0.9030 (1.1075 sellers) now with month-end looming. GBPJPY retreated from 133.50 on the softer risk bounced on USDJPY demand up through 107.00 to now post 133.35 as I type.
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. I still expect to see some dip demand though.
USDJPY held 106.50 and broke up through 106.80 pivot then 107.00 to post 107.26 so far.EURJPY is also finding support/demand at 120.00-20 still but failing above 120.60 on the bounces so far. EURUSD has been in steady retreat from 1.1320 on the softer risk/firmer USD tones but finding demand into 1.1220 again. USDCHF found a base at 0.9440 again helped by the USD demand but failing into 0.9500 as EURCHF fails to rally but with the SNB ever vigilant.
AUDUSD failed at 0.6930 and since back down on the risk-off/USD demand retreat to test 0.6850 while USDCAD has enjoyed the firmer USD/softer oil combo to post 1.3665 with talk of aluminium tariffs to be imposed by the US still casting a shadow too.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Twitter: @MSPFX and @MikePatersonFX
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