Markets in a whirl on Coronavirus pandemic fears
Thursday 27 February 2020
A busy start to the day again and we've been seeing some serious falls in global equity markets again and Treasury yields are tumbling as investors plump for buying government bonds in their bid to find a suitable safe haven outside of the currency markets and Gold. Decent moves in the Greenback again with USDJPY failing above 110.60 and now breaking 110.00 and USDCHF falling to 0.9718 after failing into 0.9780. Readers here can not say they haven't been warned about global fragility generally and now Coronavirus is adding a even bigger question mark to the big picture. I hope my steer continues to serve you well.
GBPUSD failed at 1.3000, then 1.2980 then 1.2960 and more re-sells duly placed up there. EURGBP month-end demand once again helping to push GBPUSD lower too along with GBPJPY and GBPCHF supply. Support at 1.2900 broken now on Brexit EU trade NO-Deal reminder headlines as I finish my report, triggering stops to test the next line at 1.2875.
EURGBP continues to find the month-end support I've highlighted to now post 0.8498 (GBPEUR down to 1.1765) helped by a move to funding currency status for Euro pairs and remains underpinned .GBPJPY failed above 143.20 and has fallen back through 142.50-60 support to test 142.00 amid all the risk off and selling on core pairs.
I stay poised to sell GBP rallies and buy back in the dips as ever.Still ranging overall.
USDJPY failed above 110.60 and re-sells were duly placed but EURJPY tightly bound again though as EURUSD rallies strongly amid the softer USD and EUR demand generally but with sellers still ever-ready.EURUSD duly held 1.0900 ahead of those large expiries I highlighted and fell to test the interest at 1.0850 as 15.00 GMT approached. Cue that time passing and we saw a bounce up through 1.0900 to post 1.0948 this morning as the Euro feeding frenzy continues. A classic example of option expiries impacting so book mark yesterday's chart for future reference. More large expiries today 1.0915-25 and 1.0950-55 in play. USDCHF has posted new recent lows of 0.9718 after failing at 0.9780 as EURUSD rallies with EURCHF STILL holding around 1.0600 and now rallying with the SNB casting their eve-present shadow.
AUDUSD has also broken decent support at 0.6550 in the latest retreat with some soggy Capex data and amid the Coronavirus/risk-off supply but bouncing to 0.6580 as I type with a little AUDJPY demand returning. USDCAD has broken above 1.3300 again on the softer oil price/risk-off CADJPY selling again and this time holding the gains, for the moment at least.
Fickle Forex markets ever prevailing so be ready to jump on moves with your entry/exit levels and orders as always.
Have a good day out there one and all.
Interbank rates: 08.40 GMT