Oil rises again and US Dollar underpinned too as Fed looms ever larger
Tuesday 17 September 2019
The fallout from Saturday's drone attack on Saudi Arabia's largest oil processing facility continued to play out yesterday with oil prices dropping back then spiking again amid much repercussion rhetoric playing on potential supply difficulties again. Risk plays have been variable amid all the uncertainty but the Greenback has been the favoured currency with renewed USD funding demand while we wait on the US Fed tomorrow evening.
GBPUSD has continued its retreat to test 1.2400 this morning and EURGBP tested support around 0.8845-50 again only to rally to 0.8896 (GBPEUR down to 1.1251) on some renewed general Euro dip-demand this morning and that's helped cap GBPUSD as per my recent tweet.GBPJPY has also seen some good two-way action once again and testing lower 134.00 as I type.
I remain GBP bearish overall and will continue to rally-sell as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout but happy to buy back in the dips as always.Rinse and repeat.Still no reason to change my view any time soon. Some caution required atm ofc with some inherent dip demand and the algos ever-poised for news bombs. Today the UK Supreme Court begins its deliberations on the legality of Johnson suspending Parliament and whether he misled the Queen. A potential bun fest when the result is known, probably on the 19th.
EURUSD chewed through large bids at 1.1025-30, 1.10010 and 1.1000 after the option expiries rolled off but we've held 1.0980 so far and finding some general Euro demand atm. USDJPY duly held 107.50 on the general USD demand and has been climbing slowly back since to post 108.37 before retreating to 108.00.USDCHF has also moved back up to post 0.9941 with some help from EURCHF demand but tempered by the EURUSD so far today.
AUDUSD has finally broken down through 0.6850 on some dovish tones from the RBA Minutes but has buyers still poised around 0.6830 then larger at 0.6800. USDCAD has found itself caught between the higher oil/USD demand combo and been ranging tightly again between 1.3230-60.
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.
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