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  • Mike Paterson

Pause button pressed again

Wednesday 19 May 2021

Yes folks, after that drip-fed Greenback retreat someone's pressed the pause button again amid all the uncertainty/ variables as we see some tight-range two-way business again.

JPY supply notable still as is EUR demand with German bund yields still rising but some USD buying again being seen as I type with USDJPY holding 108.80-85 and USDCHF 0.8960-65 where I've been noting bids in my report for a while now to back the technicals.

Firmer UK inflation data this morning is a concern but not a surprise.Throw rising logistics costs into the heady mix too per my earlier tweet."Anecdotal evidence from my @MSPFX physical delivery clients is a real warning of increased inflation in the pipeline.Whether the #BOE will anticipate that reality rather than act after is the question I raise..."

Jury on the Greenback still out overall despite the current obviously softer trend so ignore the noise and, as always in these fickle times, be careful with your trading. Pick your preferred entry/exit levels and don't be greedy or over-analyze. Patience and discipline are key too of course.

GBPUSD: Failures into 1.4220 and now testing 1.4175-80 support as I type amid the general USD demand.

EURGBP: A good hold now of 0.8600 amid general EUR demand but equally still capping above 0.8630 for the moment.

GBPJPY: Now underpinned at 154.40 amid the general JPY supply and core pair dip demand but sell interest at 154.80 still.

I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats.

EURUSD: A good hold of 1.2200 this time amid the general USD softness and firmer bund yields. More option interest today downstairs but not so large. USDJPY: Holding 108.80-85 STILL so far with some general JPY supply still notable. Some pips duly banked in this retreat but staying small core short. EURJPY: 133.00 now a decent base amid core pair dip demand but sellers at 133.50 capping rallies so far.USDCHF: 0.8960-65 demand holding the fall and now testing 0.9000 as EURUSD pauses but EURCHF rising with the SNB ever watchful and ready to help but sellers still poised.EURCHF: Capped into 1.0980 this time as USDCHF fell but some general EUR demand and SNB shadow keeping it underpinned.

AUDUSD: Testing 0.7750 bids/support after multiple failures above 0.7800.USDCAD: On the rise again amid the firmer USD /softer oil tones after a good hold of 1.2020 yesterday and now 1.2050.

Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good week-end everyone.

Interbank rates: 08.26 BST

GBPUSD 1.4195

EURUSD 1.2234

EURGBP 0.8618

GBPEUR 1.1602

GBPAUD 1.8274

GBPCAD 1.7128

GBPJPY 154.76

GBPZAR 19.9003

GBPHKD 11.0054

USDJPY 109.03

USDZAR 14.0390

EURJPY 133.37

EURCHF 1.0982

EURHKD 9.4874

AUDUSD 0.773

USDCAD 1.2063

USDCHF 0.8974

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