Pound settles as markets wait on US Fed
Wednesday 31 July 2019
We've seen the Pound settle down a little after it's early week tumble as attention switches toward tonight's eagerly awaited interest rate announcement from the US Federal Reserve at 18.00 GMT with Powell's presser at 18.30 GMT. The jury is still out on what action they will take , if any, and conjecture as usual is futile. Recent data has been mostly positive but there's still inherent pressure from Trump and markets to see a cut of at least 0.25%. The Greenback understandably has been tightly bound and, as ever, reaction will depend on the algos and how much the end result/rhetoric has been factored in.
GBPUSD had a wobble down to 1.2135 but equally has failed to break up through 1.2185-00 and remains on the back foot helped again by the usual month-end EURGBP demand. EURGBP buyers are prevailing again with month-end BUBA buying still in play and helping to underpin around 0.9150 (GBPEUR sellers at 1.0930).GBPJPY continues on the back foot but finding a base at 131.80 for the moment as USDJPY remains tightly bound.
I remain GBP bearish overall and will continue to rally-sell as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout but happy to buy back in the dips as always.
EURUSD is still finding some inherent demand and on the crosses too but rallies still limited in a 1.1130-80 range. USDJPY also remains tightly bound as we wait on Powell & Co. USDCHF has also found some dip demand again with the SNB never far away to keep sellers on their toes.
AUDUSD has staged a rally from 0.6860 to test 0.6900 after better than expected Q2 CPI data but it's still below target and the RBA remain compromised. USDCAD remains tightly bound but generally lower again with those bids at 1.3150 now history.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Have a good day out there one and all.
Interbank Rate 08.42 BST