Perky Pound but sellers still poised
Tuesday 7 January 2020
Risk sentiment has improved a little but remains fragile amid all the geopolitical uncertainty but it's the Pound that has been the prime mover again with a decent rally in the past 24 hours with further gains this morning. Hopes for a Brexit deal and less austerity planned from the new Tory government have helped the latest push higher but sellers remain poised and the two-way markets continue.
GBPUSD yesterday finally broke up through the 1.3150-55 and 1.3180 sell interest and has now cleared out the decent sell interest around 1.3200 to post 1.3213 but that's now filtering through as per my tweet earlier and we're back at 1.3184. Another nice rally-sell opportunity but equally a case for dip buying atm too. EURGBP has fallen to post lows of 0.8465 (GBPEUR highs of 1.1813) just above the 0.8455-60 support but has bounced since and still moving higher as I type to post 0.8493 (1.1772).GBPJPY found a good base at 142.00 with that decent support across the core pairs I mentioned and with both cores moving higher it's little surprise we've been up to test 143.30 but falling back now.
I stay poised to sell GBP rallies and buy back in the dips as ever but still see some good two-way business as we continue in these tight ranges.
EURUSD has held 1.1200 on the top side after holding 1.1150 but still remains tightly bound and now supported by EUR2bln expiry interest between 1.1125-50. USDJPY has rallied to test 108.50 on some better risk sentiment and the failure to break down through 107.75-80 yet again but sellers also remain poised amid the uncertainty.EURJPY has also found some support again amid the core pair demand. USDCHF remains tightly bound as EURUSD and EURCHF continue to range too. USDCHF bids at 0.9680 have been absorbed and we're now back above 0.9700 but sellers remain poised.
AUDUSD has fallen further to post 0.6888 on additional pressure amid the fall-out/uncertainty from the tragic forest-fire devastation. USDCAD remains tightly bound amid the uncertain risk sentiment versus firmer oil price expectations and now testing 1.2950 after that failure to hold above 1.3000.
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: 09.06 GMT