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Pound retreats again amid some general Greenback demand

Thursday 21 May 2020

US-China tensions still grabbing some headlines and COVID-19 fallout concerns both helping to keep risk sentiment to the fragile side but we've seen some general USD demand re-appear after a softer day yesterday as we continue to range. US Fed's Powell due to speak at 18.30 GMT after a raft of US data from 12.30 GMT.


GBP had another look at 1.2280-00 but retreated and we've seen the key 1.2220 break in Asia to test support at 1.2180 as EURGBP contnued its move higher. EURGBP toyed with 0.8960 for a while but finally held its gains and we've been up to test 0.9000 (GBPEUR 1.1110) which is also helping to cap GBPUSD.GBPJPY enjoyed some good two-way business but finally capped at 132.00 as USDJPY broke down through 107.50 and GBPUSD capped around 1.2280 but some USDJPY demand now has seen support building at 131.20.


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 held 107.30 again but equally can't get back up through 107.85.EURJPY held 117.75 and has eventually broken up through that 118.20 resistance area on dip demand on core pairs but capped at 118.37 as I type.


EURUSD duly failed into the strong 1.1000 offers/resistance but has found good demand at 1.0950 with the jury still out on the EU Recovery Fund.USDCHF found support into 0.9630 as EURUSD retreated from 1.1000 and with EURCHF holding 1.0580. No doubt the SNB have been supporting both pairs again. USDCHF bids now at 0.9650 then 0.9630 and 0.9600 still with more at 0.9585, 0.9560, 0.9535 and 0.9500. Offers


AUDUSD enjoyed another good day after finding support at 0.6525-30 that I mentioned but failed above 0.6600 and re-sells duly made. Retreat been down to test 0.6550 amid comments from RBA's Lowe and China looking at targeting more retaliation measures on iron imports.


USDCAD fell to test 1.3870 again only to rally to look at 1.3950-60 again on the firmer USD generally but holding as I type.


Let's continue to be careful out there in all things. Staying safe must be our main priority still.


Interbank rates:  08.28 BST

GBPUSD   1.2198

EURUSD   1.0965

EURGBP   0.8988

GBPEUR   1.1124

GBPAUD   1.8575

GBPCAD   1.6984

GBPJPY   131.54

GBPZAR   21.8667

GBPHKD   9.4587

USDJPY   107.82

USDZAR   17.9120

EURJPY   118.24

EURCHF   1.0597

EURHKD   8.5029

AUDUSD   0.6565

USDCAD   1.3923

USDCHF   0.9664


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