Pound under pressure again as another week closes
Friday 26 October 2018
In a week where risk sentiment has been wobbly at the very least,general US Dollar demand been prevailing and Brexit/May never far from the headlines we've seen the Pound lose out across the board.
GBPUSD fell again yesterday to post lows of 1.2797, not seen since early September, and we've flat-lined since with a failure to climb back above 1.2830. Sellers remain poised there with more interest now at 1.2850 and 1.2880 then 1.2900, 1.2920 and 1.2950.Immediate demand at 1.2800 then larger at the key 1.2780-85 area, 1.2750-60, 1.2730 and 1.2700 where we haven't been since mid-August. I remain a GBP bear and rally seller with the strategy continuing to work well.
EURGBP has finally broken up through the 0.8850-60 resistance area to post fresh recent highs of 0.8883 as the Pound loses out and little of real note from the ECB interest rate policy meeting yesterday. Sellers poised still between 0.8880-85 then larger into 0.8900 and 0.8920.Immediate bids/support at 0.8860 then larger at 0.8830 and 0.8800.
EURUSD tried rallying through 1.1430 while Draghi was holding his press conference having left interest rates on hold as expected but he ramins between a rock and a very hard place as does the Euro and we fell back to test support at 1.1380 before falling further to post 1.1358.Bids/support still between 1.1350-60, 1.1330 and 1.1300 where barrier option interest will provide decent support. Sellers poised now around 1.1380 then 1.1400, 1.1430 and 1.1450 still.
USDJPY has failed into 112.50 as risk-off Yen demand prevails again and currently testing immediate support at 112.00 with larger interest behind that at 111.80 still. Immediate sell interest at 112.30 and still at 112.50 an area I highlighted yesterday too then larger between 112.80-113.00 still. I remain a rally seller for the moment while respecting the 111.80-112.00 support. USDCHF has remained underpinned above 0.9950 and testing 1.0000 with the EURCHF dip demand at 1.1350 holding so far despite the falls in EURUSD. More bids at 1.1330 and 1.1300 with sellers still at 1.1400, 1.1430 and 1.1450. USDCHF bids now at 0.9980 and 0.9960 then 0.9930 and 0.9900 still with sellers now into 1.0030 and 1.0050. Happy to still trade both sides of the price action at the moment.
AUDUSD remains on the back foot and now fallen through 0.7050 and 0.7030 bids/support having failed at 0.7100 yet again. Demand now at 0.7020 then larger into 0.7000 and 0.6980 with sellers poised around 0.7050, 0.7080 ( where decent size option interest rolls off today) and 0.7100 still. I remain a rally seller. USDCAD has rallied further after its post-BOC wobble testing 1.2980 and has now posted 1.3145 highs this morning on a firmer USD/softer oil price combo.Sellers now into 1.3160 then 1.3180-00 with buyers at 1.3120, 1.3100 then larger into 1.3080. Good two-way business this week for sure.
Fickle Forex markets ever prevailing so get your orders in to take full advantage of these moves.
Tomorrow sees the mighty Shrimpers making the long journey north to Sunderland in a bid to maintain our recent run of good away form. Bring it on!
Have a great and peaceful week-end out there one and all.
Interbank Rate 08.58 BST GBPUSD 1.2813 EURUSD 1.1380 EURGBP 0.8881 GBPEUR 1.1257 USDJPY 112.02 USDCAD 1.3137 USDCHF 0.9994 GBPAUD 1.8205 GBPCAD 1.6831 GBPCHF 1.2803 GBPHKD 9.9339 EURHKD 8.8246