More of the same amid global uncertainty
Wednesday 8 May 2019
Yes folks, it's all very fragile out there still and we're seeing some cracks appear again in the Pound as Brexit concerns and risk-off sentiment prevail. Yen and Swiss Franc demand notable again too across the board.
GBPUSD was duly capped by 1.3120-20 sellers and has been down to look at the other end around 1.3030 helped by the EURGBP demand/GBPJPY supply combo.Now holding 1.3080 on the rallies with large option expiries at 1.3085 in play today.
EURGBP dip-buyers have been prevailing again as I've been warning and that means GBPEUR has been sliding lower as GBPJPY enjoyed another decent retreat on the risk-off Yen demand/GBP supply combo helping the pair move down through the decent 144.00 support to test 143.50.
I remain GBP bearish overall and continue to rally-sell as my preferred strategy and buy back in the dips amid all the global uncertainty/indecision including Brexit. Plenty more noise to come in the days/weeks ahead and the algos will continue to feed off the headlines.
EURUSD still has bids building at 1.1180 holding the downside and offers between 1.1220-30 capping the ralies as the pair finds itself caught up in the EUR crossfire still. eg EURGBP demand vs EURJPY supply. USDJPY found some dip demand below 110.00 but rally sellers,including me, remain poised as the risk-off sentiment prevails. USDCHF has topped out around 1.0200 yet again by the risk-off CHF demand but still holding 1.0150 as EURUSD finds a few rally sellers again. EURCHF buyers at 1.1380 stil.
AUDUSD duly retreated back into 0.7000 but dip-demand notable for the moment.Last night the RBNZ cut interest rates and we saw the NZ$ weaken sharply with before staging some recovery. GBPNZD tested 2.00 resistance before falling back to 1.9770. Markets definitely thinking the RBA will also cut next time after the election is over.
USDCAD is still making its mind up with some CADJPY selling notable again but we've failed above 1.3480 in the latest rally.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
What a turnaround last night as Liverpool carried out one of the greatest football comebacks ever. Can Spurs do the same tonight and make it an all-English team Champions League final? Would be remarkable but we never say never eh?
Have a good day out there one and all.
Interbank Rate 08.40 BST