Pound feels the love again
Monday 10 May 2021
BOE in more hawkish mood on Thursday (as expected here per my update preview), success for the UK government in the the multi-elections ( also as expected) and vaccine rollout feel-good factors all adding up to give the Pound a boost and solid base as we start another week. Throw in some firmer risk sentiment GBPJPY demand and here it is with solid gains across the board.
US Dollar still feeling a bit of pressure generally after those much weaker US NFP jobs/wages data on Friday.
Jury still out on the Greenback overall so, 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 a virtue too of course.
GBPUSD: Based at 1.3950-80 and now testing 1.4100, not seen since February on the Pound love-fest and better risk tones.EURGBP: A good cap again at 0.8700 helping the Pound recovery and now testing the key 0.8620-30 support again.GBPJPY: Rally sellers at 152.20 prevailing again for the moment after finding good support at 151.30 post-BOE. highest levels for 2 years
EURUSD: A good hold of 1.2100 this time but 1.2180-00 a bigger challenge.USDJPY: A hold of 108.50 after the NFP-led tumble but failing above 109.00 since.EURJPY: 131.50 now a decent base as I highlighted here on Friday on the better risk tones but sellers poised now at 132.50.USDCHF: Trying to cling onto 0.9000 in the latest retreat as EURUSD rallies but EURCHF supply still notable and the SNB ever watchful and ready to help. EURCHF: Still holding 1.0930 but equally failing at 1.0980 still.
AUDUSD: Found support at 0.7760 helped by AUDJPY demand and then 0.7800 and 0.7840 post-NFP to test 0.7880.
USDCAD: The retreat continues amid the CADJPY demand and firm oil prices but holding 1.2100 this time so far with some option interest around there and 1.2150 today
Southend sadly limped out of the football league for the first time ever on Saturday with a 1-1 draw having missed a penalty to win which sums up our season. The re-building must start now.
Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good week everyone.
Interbank rates: 09.10 BST