Markets still in a whirl
Thursday 5 September 2019
More Brexit/UK parliament mayhem has left the Pound mostly underpinned on hopes that No-Deal Brexit will not happen but there is still much uncertainty and outcome yet to play outwith a General Election still on the cards. Meanwhile markets are favouring a little risk-on sentiment but all very fragile still
GBPUSD held 1.2230 on a couple of rallies but found support at 1.2180 and broke up through 1.2250 only to fail again and retreat before bouncing again this morning to post 1.2285. EURGBP has been in retreat again on the GBP buying and now fallen through 0.9000 to post 0.8978 this morning sending GBPEUR to 1.1129.GBPJPY has also seen some good two-way action but supported now on the USDJPY and GBP demand.Better risk sentiment has once again added to the upside momentum and we've now been up to 130.91.
I remain GBP bearish overall and will continue to rally-sell as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout but happy to buy back in the dips as always.Rinse and repeat.Still no reason to change my view any time soon. We have turmoil in the UK and once markets see through the smoke and mirrors the picture remains a very fragile one. Some caution required atm ofc so pick your levels wisely as i said yesterday.
EURUSD has made further progress higher but tempered by EURGBP and EURCHF supply versus EURJPY demand on the better risk plays. USDJPY found buyers into 106.00 and we've been back up to test 106.75-80 on the better risk sentiment. Large expiries at 106.25-30 and 106.00 in the mix. USDCHF has been capped by EURUSD rallying again and some EURCHF supply but finding some dip support demand around 0.9800.
AUDUSD has benefited from confirmation that HK is withdrawing the extradition bill plus AUDJPY demand and has broken up through 0.6800 to test 0.6820-30. The currency will still find sellers though with the China trade talk uncertainty still in play and RBA generally dovish although much of that is now factored in. USDCAD found sellers again helped by some CADJPY demand again as I warned yesterday but currently finding support around 1.3200.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Don't forget I offer 1-2-1 mentoring if there's areas of trading this latest volatility, that you might need some further help with.
Have a good day out there one and all.
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