Pound retreats again but still going nowhere in a hurry.
Tuesday 17 July 2018
FX markets still range-bound but after yesterday's GBP rally we've seen sellers prevail again albeit with demand in the dips too. UK jobs/wages data this morning at 09.30 BST the next set of stats for the BOE to mull over before their August interest rate decision. Wages as always will be the key data given it's key impact on spending and, as elsewhere in the world are struggling to advance. With inflation fallinG/capping there is currently some respite but household debt is still too high again and that must remain a concern.
GBPUSD held the 1.3300 resistance area I highlighted again with option expiry interest yesterday between 1.3310-30 helping to cap a decent rally from the 1.3220 support area.Immediate support/buying interest still at 1.3220 then 1.3200, 1.3180 and 1.3150.Sellers now poised around 1.3260 then larger between 1.3280 and 1.3300 again.More behind that into 1.3330-50.Keep selling the rallies with Brexit and UK government turmoil never far from the headlines.More voting takes place today on various amendments.
EURGBP remains underpinned helped by yesterday's 0.88800 option contract support and with buyers still lining up around 0.8820.Sellers now into 0.8880 and 0.8900 then 0.8920.
EURUSD has rallied again to post 1.1738 as USD sellers return and amid some general Euro demand. Buyers lined up now around 1.1700 then larger into 1.1670 still and 1.1650. Sellers still poised at 1.1750 and 1.1780-00 still.
USDJPY continues to range but has now capped at 112.60 ahead of sellers at 112.80 and large barrier option contract interest at 113.00 still.Buyers now around 112.20 then 112.00 and 111.80-85. Sellers around 112.80 still then 113.00, 113.20 and 113.50 where another barrier option lays in wait. USDCHF failed to hold above 1.0000 and has fallen back to look at 0.9950 helped again by more sellers on EURCHF above 1.1700.
AUDUSD also remains range-bound with good bids/support around 0.7350 then 0.7320 and 0.7300 where large barrier option interest lurks. Immediate buy interest still at 0.7400 and 0.7380. Sellers around 0.7450 still capping for the moment then more at 0.7480 and 0.7500. USDCAD also currently going nowhere in a hurry in a 1.3100-1.3200 range. Sellers at 1.3150, 1.3175-80 and 1.32o0 with buyers still poised at 1.3100 then 1.3080 and 1.3060.
Fickle and ranging markets prevailing still so get your orders in to take full advantage of these moves.
Have a good day out there one and all.
Interbank Rate 08.20 BST GBPUSD 1.3241 EURUSD 1.1731 EURGBP 0.8857 GBPEUR 1.1287 USDJPY 112.30 USDCAD 1.3117 USDCHF 0.9952 GBPAUD 1.7822 GBPCAD 1.7368 GBPCHF 1.3177 GBPZAR 17.5194 GBPHKD 10.2665 EURHKD 9.0959