Markets ranging still but Pound feeling some heat again
Tuesday 8 September 2020
With the US and Canada holidays yesterday FX pairs came to a grinding halt in real terms in European afteroon trading but we've seen some moves in Asia and early Europe now so far but the Pound remains a little vulnerable as Brexit trade deal concerns continue to create concern.
UK PM Johnson today makes a speech to EU leaders and early sightings/reports are that it's not going to be pretty, adding to the current tensions but all part of the wobble since week-end press comments first appeared. We should know a little more by the end of today but this still has a long way to run and we should expect more twists and turns in both the rhetoric and GBP pairs.
Risk sentiment is still very fragile with equity and oil prices coming under pressure again as European trading gets fully underway.
GBPUSD has seen a further decline to now look at 1.3100 support/bids this morning after stalling to get back above 1.3180 from 1.3145-50 while EURGBP has broken up through the 0.8965-70 resistance and now posting 0.9002 as I type as GBP retreats again with large option expiries at 0.9000 in play which might hewlp contain rallies for the moment but underpinned still for the moment. All eyes on EU Brexit talks/rhetoric.GBPJPY has continued its journey south after wiping its feet at 140.00 and 139.60 to post lows of 139.45 as I type.
I stay poised to sell GBP rallies overall as my preferred side.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 106.00-106.50 amid the variable risk and USD combo.EURJPY has capped at 125.80 but since finding support at 125.30 once more on the retreat amid the variable risk tones. EURUSD found support around 1.1800 again and continues to range tightly amid mixed risk tones and cross-pair flows with sell interest at 1.1850-70.USDCHF has found a base at 0.9130 now (SNB still making a presence imho) but equally failed at 0.9180 as EURUSD rallied from 1.1800 but still underpinned with EURCHF rising further.
AUDUSD has failed above 0.7300 again as the jury remains out and now retreating through 0.7280 helped by news of China expelling two Aussie journos on spying suspicions, so they claim. USDCAD is ranging 1.3050-1.3150 still amid the variable USD/risk plays but on the rise again now oil price drops further after yesterday's Saudi price cuts announcement.
Markets are ever-fickle but good two-way pips to be had so don't forget to contact me if there's areas of trading these markets 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.
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