Pound under pressure as another week closes

Friday 27 September 2019

A combination of the ongoing Brexit/Johnson debacle, the usual month-end EURGBP demand and now some dovish comments from BOE's Saunders this morning have all combined to undermine the Pound again. I hope you've been able to take advantage.

Elsewhere there's been some conciliatory tones on US-China trade talks but all very much up in the air still and other areas of global uncertainty still loom. US Durable Goods and Michigan Sentiment Index the main data risk. German Bundesbank head Weidmann speaking at 09.10 GMT

GBPUSD yesterday held 1.2300 before bouncing to 1.2366 where sellers/re-sellers including me were duly poised. The subsequent retreat on some general USD demand has been accelerated this morning to post 1.2271.EURGBP held 0.8887 and retreated to test 0.8850 and we've been up to test 0.8900 (GBPEUR down to 1.1235) this morning with month-end Euro demand once again in play as ever. GBPJPY has also fallen through the 133.00 support to post fresh recent lows of 132.33.

I will continue to rally-sell GBP as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout but happy to buy back in the dips as always.Rinse and repeat.Still no reason to change my view any time soon as the current madness plays out but caution as ever is appropriate. Just ignore the noise and let the algos do the work.

EURUSD yesterday duly found support into 1.0925-30 ahead of large barrier option interest at 1.0900 and has survived a couple of tests on that level before bouncing to 1.0930 this morning helped by some EURGBP and EURJPY demand but sellers remain poised. USDJPY remains underpinned on some general USD demand and better risk sentiment but still failing to break 108.00. USDCHF has also been ranging as EURUSD retreats/rallies and EURCHF remains tightly bound.

AUDUSD has retreated again but buyers at 0.6735 still prevailing with more at 0.6700 but sellers remain poised too while USDCAD has seen good two-way business again within 1.3220-1.3320 amid the variable oil/USD/risk sentiment.

Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.

Tomorrow sees the variable Shrimpers return to the hallowed Hall and looking to consolidate on last Saturday's first win of the season. Staying in Essex we must say congrats to my county's cricketers who have now become the first team to win both the T20 and County Championship in the same season.

England's rugby union boys secured another comfortable win yesterday versus the USA but have the two tougher Group matches to come now. All good so far though.

Have a good day/weekend out there one and all.

Interbank Rate 08.35 BST

GBPUSD   1.2280

EURGBP   0.8888

EURUSD   1.0918

GBPEUR   1.1245

GBPAUD   1.8169

GBPNZD   1.9513

GBPCAD   1.6287

GBPJPY   132.40

GBPZAR   18.5341

GBPHKD   9.5207

USDJPY   107.83

USDZAR   15.0928

EURJPY   117.75

EURCHF   1.0845

EURHKD   8.4665

AUDUSD   0.6752

USDCAD   1.3268

USDCHF   0.9932