More of the same as FOMC meeting approaches
Tuesday 10 December 2019
Yes folks, FX pairs still tightly bound with attention shifting now to tomorrow's US Federal Reserve FOMC latest decision on interest rates/monetary policy with US-China and UK General Election headlines still in the mix too. Risk sentiment therefore remains variable.
GBPUSD remains underpinned still amid some general USD softness but not yet breaking up through yesterday's fresh 7-month highs and contained by GBP 650m in expiries at 1.3150 today. EURGBP is tightly bound still as core pairs rally/retreat in tandem.GBPJPY continues to go nowhere in a hurry with core pairs and sentiment both stable.
Rally-selling GBP remains my preferred strategy overall but, as I've been warning for a while, I respect that some others (and the algos) see it differently at the moment. Remember we're ranging still so don't get too greedy whatever your bias. I continue to stay poised and sell when upside momentum fades but respecting the current demand still.
EURUSD is holding above 1.1050 but capped into 1.1100 with more expiries in play again today while USDJPY is holding 108.50 but still not racing anywhere in a hurry for the moment with large expiry interest between 108.60-70 (USD1.65bln) and 109.00(2.55bln) today. USDCHF continues to find dip demand helped by the EURUSD and EURCHF still ranging.
AUDUSD has found itself tightly bound still amid the variable risk and USD sentiment but retreating to test 0.6800 again while USDCAD had a retreat/down to 1.3220 but on the rise again this morning.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Have a good day out there one and all.
Interbank rates: 08.30 GMT