Pound in a whirl as PM Johnson's condition worsens
Tuesday 7 April 2020
Yesterday's news that UK PM Boris Johnson had been moved into intensive care gave the Pound more jitters but GBP pairs have recovered well and further again this morning on the news that he is not yet on a ventilator but has been given oxygen. Strange and uncertain days indeed and we wish the PM well as we do all those unfortunate enough to have contracted this truly awful virus.
The Pound's recovery has been helped by some general risk-on sentiment and USD softness prevail with equities and oil rallying again for the moment but markets will remain fragile ofc.
GBPUSD fell into 1.2200 from 1.2300 on the initial Boris news and then further in another quick dip to 1.2163 but has since rallied to test 1.2350 on that better risk sentiment helped by GBPJPY demand. Some re-sells placed after profit taken on the dip but it remains a confused picture still for the moment and caution advised. EURGBP has been up to look at 0.8860-65 (GBPEUR down to 1.1278) again only to retreat once more but holding 0.8800 so far (GBPEUR sellers at 1.1365). GBPJPY found support around 133.00 on the GBP tumble but rallying to post 134.35 as I type amid the risk-on sentiment and GBP recovery.
I stay poised to sell GBP rallies overall and buy back in the dips as ever but patience continues to be a virtue and entry level key as always.
USDJPY has capped around 109.30 again as per yesterday's order board and fallen on the general USD weakness but finding support below 108.80 helped by the better risk sentiment. EURJPY has rallied well again, this time from the slightly higher base of 117.50 to post 118.40 helped by the better risk sentiment and core pair dip demand but sellers still poised.EURUSD has held the 1.0780 support again and rallied steadily to 1.0873 on the softer USD/better risk combo.USDCHF has capped into 0.9800 as EURUSD rallies and USD softens but retreat tempered by more EURCHF dip demand at with the SNB still in the frame.
AUDUSD remains underpinned and helped again now by more AUDJPY demand, steady Gold/metals snd the RBA springing no nasty surprises at last night's meeting leaving rates on hold amid some customarily hawkish tones. USDCAD has capped around 1.4160 and retreated to break down through the 1.4080 bids/support to test next decent line round 1.4020 on the firmer oil/softer USD and CADJPY demand triple whammy.
Fickle Forex markets ever prevailing so be ready to jump on moves with your entry/exit levels and orders as always. Caution advised as ever if you're not sure.
Lots going on right now, and the foreseeable future, so don't forget that I offer 1-2-1 mentoring if there's areas of trading these volatile markets that you might need some further help with.
Let's continue to be careful out there in all things as ever. Staying safe must be our main priority still.
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