Pound demand again amid mixed EU messages
Tuesday 15 October 2019
Yesterday saw an early test lower for Pound pairs but failure of GBPUSD to break back down through the now pivotal 1.2500 area saw a full retracement and now we have further demand with Barnier comments first driving GBP higher then retreating. Conjecture abounds on whether a deal can be sorted this week and even then we still have the UK Parliament/ Brexit extension unknowns too with a special sitting on Saturday too.UK wages and jobs data in the mix this morning too at 08.30 GMT with Carney testifying to the TSC on the latest FSB report at 08.30 GMT too.
Elsewhere the US-China trade talks continue to grab headlines but with no firm resolution and Turkey's foray into Kurdish territory is still creating concern and now brought US sanctions but risk sentiment unfazed for the moment.
GBPUSD retreated to 1.2516 yesterday only to rally back to from whence it came and now been up to test 1.2700 then down to 1.2640 to provide good two-way pips regardless of your trading bias.EURGBP also enjoyed the return trip and now posted fresh recent lows of 0.8690 (GBPEUR up to 1.1507). GBPJPY continues to see good two-way business and now posted fresh recent highs of 137.60 before falling back to look at 137.00 support.
I will continue to rally-sell GBP as my preferred strategy overall too amid the ongoing uncertainty/indecision but always happy to buy back in the dips still.Yes the current hope/optimism still has to be respected as the madness plays out but I repeat that this could still have a number of outcomes and remains pure guesswork/conspiracy theory.
Update: The softer UK wages/jobs data gave the Pound a tiny knock as per my tweet but still looks resilient with more pressing Brexit focus and now BOE governor Carney testifying to lawmakers on the latest FSB report.
EURUSD remains underpinned helped by EURGBP support and some risk-on EURJPY demand but we've failed into the 1.1050-60 offers again while holding 1.1000 on the retreat yet again.USDJPY also remains tightly bound amid the variable USD and risk sentiment.USDCHF continues to find dip demand with EURCHF underpinned too as EURUSD continues to find support around 1.1000.
AUDUSD failed into 0.6800 once more with large option expiry interest again there today and Thursday and has fallen to 0.6763 ahead of good support at 0.6750.USDCAD held around 1.3180 helped by some CADJPY supply, firmer USD and softer oil prices but failing into 1.3250 so far.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Don't forget I offer 1-2-1 mentoring if there's areas of trading this latest volatility that you might need some further help with.
Have a good day out there one and all.
Interbank Rate 08.27 BST