• Mike Paterson

Pound undermined still as markets wait on BOE

Range trading still prevailing for the moment amid some general US$ demand and as we wait on the latest deliberation from the Bank of England at midday. No change to interest rates expected but as always we'll look for any change in voting and rhetoric. I expect Carney & Co to remain cautious, stuck between a rock and a very hard place still.

GBPUSD has fallen again to 1.3125 after yesterday's rally failed around 1.3220.Immediate support/buying now into 1.3100 then 1.3075-80 and 1.3050. Sellers into 1.3180-00, then 1.3225-30 and 1.3250  Keep selling those rallies as I've been saying for a while now as regular readers will know.

EURGBP is ranging still but currrently finding sellers around 0.8800 again. Buyers  poised at 0.8780 then 0.8750 and 0.8720-30 still. More sellers around 0.8830. Overall the Pound remains fragile with Brexit and UK government turmoil never far from the headlines.

EURUSD has held 1.1530 again but with rallies into 1.1600 still being sold as I been highlighting. Dip demand still around 1.1530 then 1.1500 and 1.1480-00. Sellers 1.1580,1.1600, 1.1630 and 1.1650. Large option contact interest rolling off today and should help to contain range.

USDJPY has climbed up to test 110.80 on general US$ demand. Buyers now around 110.30 THEN 110.00, 108.80 then 109.50 again. Sellers around 110.80 then 111.00 still with some added help from some option contract interest of its own. USDCHF remains tightly bound with rallies still failing to break 1.0000 with EURCHF sell interest still prevailing. SNB left policy and rhetoric unchanged this morning.

The Aussie, NZ and Canadian $ have all remained on the back foot too. AUDUSD still has buyers at 0.7330 and 0.7300.Sellers around 0.7385 then 0.7400 and 0.7420. USDCAD buyers now around 1.3280 then 1.3250. Sellers around 1.3330 then 1.3350.

Fickle and fragile markets prevailing still so get your orders in to take full advantage of the moves.

Have a good day out there one and all.

Interbank Rate 08.50 BST GBPUSD   1.3134 EURUSD   1.1548 EURGBP   0.8792 GBPEUR   1.1372 USDJPY   110.62 USDCAD   1.3320 USDCHF   0.9960 GBPAUD   1.7847 GBPCAD   1.7494 GBPCHF   1.3084 GBPZAR   18.0554 GBPHKD   10.1828 EURHKD   8.9545

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