Markets ranging still as jury remains out
Friday 27 November 2020
US Thanksgiving hols continue and so do the recent ranges as markets play a second-guessing wait n see game amid month end flows et al.
Some good two-way business to be had again in the last 24 hours but overall we continue to see some USD supply prevailing apart from the month-end flows.US corporate month-end USD demand/repatriation for tax needs still in the mix along with the usual month-end equity hedge related USD out-flows. A few notable option expiries in play today too. Face to face Brexit talks resuming this week-end so watch out for any notable headlines rather than the usual rubbish.
Whether it all brings any greater volatility today/Monday remains to be seen but forewarned is always forearmed.
GBPUSD remains in the 1.3300-1.3400 range and good two-way business prevailing while EURGBP has held the 0.8900 area yet again after failing around 0.8930-35 once more as core pairs move up/down in similar pattern on the variable USD flows. GBPJPY capping around 139.50 this time as the range tightens.
I stay poised to sell GBP rallies as my preferred side and buy back in the dips as ever.Patience continues to be a virtue and rally-selling in GBPUSD is still bringing some reward but entry level key as always. Definitely still expecting dip demand as I've warned for a while now. Brexit still the large elephant in the room.
USDJPY has capped at 104.30 this time around and my short strategy continues to reap rewards.
EURJPY capping at 124.30 now as JPY demand returns and core pairs find rally sellers again. EURUSD found support at the pivotal 1.1880 area again but equally failing at the freshly extended high of 1.1940 again. USDCHF remains on the back foot amid the softer USD and underpinned EURUSD tones persist with EURCHF softer but also underpinned with the SNB still ever watchful.
AUDUSD has held 0.7350 on the latest retreat and now testing 0.7380 again as the tight ranges continue while USDCAD has failed at 1.3030 again and retreated back down through 1.3000 on the general USD supply but holding 1.2980 again as I type.
Markets are ever-fickle so don't forget to contact me 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: 08.27 GMT