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  • Writer's pictureMike Paterson

Markets still making their mind up

Tuesday 20 October 2020

The Pound has had its usual retreat from that Brexit-led rally with the invariable reality check following, the electioneering game over US stimulus continues and COVID threatens once again across the globe.

Just another day/week in the ever-fickle world of Forex and risk appetite remains fragile/variable.

GBPUSD duly capped at the decent line at 1.3020-25 and since retreated to test 1.2920 as EURGBP climbs back up through 0.9080-00.  Some more re-sells duly made up between 1.2980-1.3020 and last pips pips banked at 1.2925 this morning as per my tweets. EURGBP held 0.9020 and made a steady ascent to 0.9080 then popped up to get back through 0.9100 as the GBP tones softened and EURUSD remained underpinned. I remain a dip buyer overall but respecting the current two-way business.GBPJPY found a cap at 137.25 but since seen a steady retreat amid the softer GBP/risk tones.

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 entry level key as always. I still see dip demand though with markets and risk sentiment still in a state of uncertainty overall.Brexit remains the very big elephant in the room.

USDJPY remains tightly bound 105.30-60 amid the variable risk/USD tones. EURJPY has found a decent line at 124.00 with core pairs both now finding dip demand. EURUSD remains underpinned since breaking up through 1.1750-60 and that now becomes a decent support line but equally not racing up through 1.1800 either so far. USDCHF capped at 0.9160 again as EURUSD rallied but holding 0.9080 so far with SNB casting its shadow still with EURCHF still looking a little soggy for the moment.

AUDUSD capped above 0.7100 again and retreated to test 0.7030 helped by some dovish comments from RBA's Kent. USDCAD still tightly bound amid the variable/fickle risk/USD/oil tones and again holding between 1.3160-1.3220.

Markets are ever-fickle 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.

Interbank rates:  08.42 BST

GBPUSD   1.2930

EURUSD   1.1767

EURGBP   0.9091

GBPEUR   1.0997

GBPAUD   1.8370

GBPCAD   1.7063

GBPJPY   136.62

GBPZAR   21.3975

GBPHKD   9.9638

USDJPY   105.54

USDZAR   16.4985

EURJPY   124.21

EURCHF   1.0710

EURHKD   9.0580

AUDUSD   0.7045

USDCAD   1.3183

USDCHF   0.9100

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