More of the same as the Greenback decline continues
Wednesday 19 August 2020
Yes folks, it's a soggy US Dollar which continues to be the main theme of these ever-fickle FX markets amid the ongoing general ultra-cheap money scenario and risk appetite.
Whether/when we will start to run out of steam is the big question but that's not witihn our remit to answer so we just to need to focus on what's playing out in front of us still.US Federal Reserve FOMC Minutes and OPEC+ meeting in the mix today.
GBPUSD broke up through 1.3180 and didn't take long to take out the 1.3200 offers/resistance then marched higher on the softer USD tones/better risk combo to post 1.3265 in Asia, highs not seen since January. EURGBP rallies have failed at 0.9060 and now broken down through 0.9030 to test 0.9000 as I type with the GBPUSD rallying to those 2020 highs. GBPJPY found a base at 138.80 and has rallied to test 140.00 again amid some core pair demand decline and better risk and supported now into 139.60 for the moment.
I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever.Patience will continue to be a virtue and entry level key as always. I still expect to continue seeing dip demand though as we continue to range.
USDJPY has been down to look at 105.00 on the latest retreat but dip demand duly found and JPY risk-on selling has seen a rally to 105.60. EURJPY is ranging 125.50-126.20 amid the variable risk.EURUSD duly found support amid the USD sales as I warned and broke up through 1.1920 to test 1.1965 before running out of puff but bids/support in place now at 1.1920. USDCHF failed at 0.9060 this time and looked at 0.9000 as EURUSD rallied and with EURCHF still ranging with the SNB lurking. Currently capping at 0.9040.
AUDUSD found support at 0.7215 after an initial retreat from 0.7260 and now posting fresh highs of 0.7265, not seen since Feb 2019, as I type. USDCAD capped around 1.3200 then 1.3175 as USD selling resumes but finding some support below 1.3150.
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: 08.27 BST