More of the same as markets remain fragile
Friday 7 December 2018
All the factors I mentioned yesterday are still in play and with risk sentiment still fragile we've seen more roller-coaster action, albeit in tight ranges but with no real outcomes still.
GBPUSD yesterday held 1.2700 again and has been back up to 1.2812 but down again as I type to post 1.2735 as Brexit and risk-sentiment generally continue to impact. Key US jobs data today at 13.30 GMT can be thrown into the mix for clues on future Fed policy and we should expect some algo-led action at least.
Immediate offers/sellers around 1.2760 then larger into 1.2780 and 1.2800 again then 1.2820 and 1.2850 still. Bids/demand building now into 1.2730 then 1.2700 and 1.2680 still then 1.2650,1.2630 and 1.2600.I remain GBP bearish overall and happy to jump on rallies then buy back in the dips while remaining core short, a strategy that continues to work well.
EURGBP remains underpinned and has nudged its way back up to 0.8932 (GBPEUR down to 1.1195) as the GBP selling resumes. Buy interest still around 0.8900, 0.8880, 0.8850 with sellers now at 0.8950 and 0.8980-00 still.
EURUSD has been tightly bound again with decent option contract expiry interest at 1.1300, 1.1350 and 1.1400 helping to contain.Immediate demand/support now around 1.1350 then 1.1320 and 1.1300 again with sellers poised into 1.1400, 1.1420 and 1.1450 still.
USDJPY fell further to 112.24 as the Huwaei incident continued to play on risk sentiment but we've since seen a lift back to 112.93 before capping once again. Bids now building again around 112.50 then 112.25-30 and 112.00 with sellers at 113.00 then between 113.20-30 and 113.50 still. I remain a rally seller buying back in the dips with decent 2-way business to be had.
USDCHF has also fallen to 0.9920 with EURCHF still finding a few sellers and still failing to break higher out of recent range. Sellers remain poised on both even if the SNB will still look to "smooth" the declines.Bids/support still at 1.1280 with USDCHF demand still at 0.9920 then larger into 0.9900. Sellers poised at 1.1320 then 1.1350-60 still with USDCHF supply at 0.9960, 0.9980 then 1.000. I'm happy to trade both sides of the price action at the moment in these tight ranges.
AUDUSD remains on the back foot and now posted new recent lows of 0.7191 but has since recovered a little poise to post 0.7242 with the large option expiry interest today at 0.7250 in play that I've previously highlighted Sellers still into 0.7250, 0.7280 and 0.7300 with demand into 0.7200 and 0.7180. USDCAD rallied again to post 1.3445 on softer oil and the Huawei arrest implications but has since retreated.Buyers still building at 1.3370 and 1.3350 with sellers poised at 1.3400, 1.3430 and 1.3450.
Fickle Forex markets ever prevailing so get your orders in to take full advantage of these moves.
Tomorrow the mighty Shrimpers of Southend United FC travel to historic Portsmouth looking to build on this week's Checkatrade Trophy win at not-so historic Luton, a first win there since 1964 though so history made of sorts!
So sad to hear of the passing of The Buzzcocks' Pete Shelley who has left us after a heart attack aged just 63. A real force in the days of punk and beyond and a band I had the great pleasure of seeing on many occasions. RIP Pete and thank-you for the music and memories.
Have a good week-end out there one and all.
Interbank Rate 08.45 GBPUSD 1.2755 EURUSD 1.1380 EURGBP 0.8922 GBPEUR 1.1205 USDJPY 112.82 USDCAD 1.3392 USDCHF 0.9928 GBPAUD 1.7652 GBPCAD 1.7070 GBPCHF 1.2657 GBPHKD 9.8889 EURHKD 8.8255