Pound still on the back foot and Carney now in focus
Tuesday 4 September 2018
After the latest Brexit wobble we saw the Pound lose further ground yesterday but it's not the only story in town with trade wars and emerging market currency declines still very much in focus.
GBPUSD has broken support around 1.2880 and 1.2850 and sits on lows around 1.2842 as I type. Some buy interest between 1.2825-30 with a decent line in the sand below that at 1.2800, then 1.2780 and 1.2760. Sellers now poised around 1.2850 and 1.2880, then 1.2900, 1.2930 and 1.2950. I remain GBP bearish and a rally seller but some caution advised today as we have BOE governor Carney and Chief Economist Haldane appearing before the parliamentary Treasury Select Committee at 13.15 BST. Main topic is the latest BOE Inflation Report but we can expect a grilling on other matters not least of which Brexit and future rate hike chances. UK construction PMI data before that at 09.30 BST but not a game changer.
EURGBP has duly failed around the 0.9030 pivot area but remains above 0.9000 (GBPUSD 1.1108). Sellers poised again around 0.9030 then 0.9050 and 0.9080 with the barrier option at 0.9100 still casting a shadow but a long way off for the moment.Immediate demand around 0.9000 still then larger into 0.8970, 0.8950 and 0.8930 which remains a key area as does 0.8900. Carney & Co's testimonies also very much in play on this pair today.
EURUSD rallied back above 1.1610 only to run out of puff on general USD demand and has now fallen back through the support at 1.1580. More demand between 1.1550-60 then 1.1530 with sellers now around 1.1600, 1.1620-30 then 1.1650.
USDJPY remains tightly bound with buyers around 110.80 still providing support then 110.50.We've rallied on USD demand to post 111.45 as I type but sellers remain poised at 111.80-00. USDCHF has found support of its own at 0.9680 to rally and post 0.9729 but remains delicately poised with sellers at 0.9750, 0.9770 and CHF buyers ever ready. Dip demand still expected though.
AUDUSD felt some love after the RBA left interest rates on hold and providing no real scares but sellers were poised and we're fallen back to 0.7182 after 0.7236 highs. Sell interest now at 0.7200 then into 0.7230 and 0.7250. Buyers down here around 0.7180 then larger at 0.7150 and 0.7130. USDCAD has rallied again to post highs of 1.3144 with the Canadian $ continuing to suffer over the NAFTA uncertainty. Some buyers now around 1.3120 and 1.3100 then larger into 1.3080 and 1.3060. Sellers around 1.3160 then 1.3180-3200.
Fickle Forex markets ever prevailing, so get your orders in to take full advantage of these moves.
After England's fine cricket Test series victory over India we now have Alastair Cook announcing his international retirement with one last hurrah to come at the Oval. England's highest ever run scorer and catcher, plus winning skipper in 2 Ashes series makes him one of the best ever in the glorious game that is cricket let alone England.
Have a good day out there one and all.
Interbank Rate 07.50 BST GBPUSD 1.2848 EURUSD 1.1578 EURGBP 0.9011 GBPEUR 1.1097 USDJPY 111.35 USDCAD 1.3111 USDCHF 0.9713 GBPAUD 1.7823 GBPCAD 1.6841 GBPCHF 1.2480 GBPZAR 19.2160 GBPHKD 9.9595 EURHKD 8.9750