Pound wobbles again as Brexit grabs some headlines
Monday 7 September 2020
Brexit trade talks, especially with the EU, continue to be the elephant in the room for GBP pairs and some negative tones/comments in the week-end press have given the Pound a knock back after making late gains on Friday.
US Labour Day holiday today and will help to either create more volatility due to the lesser liquidity or else give traders and algos a day off amid the current indecision on risk and USD anyhow. Canada on holiday also.
GBPUSD saw a good retreat to look at 1.3175 on Friday amid the firmer USD plays after stronger US jobs/wages data
but later in the day saw USD supply return and up we went to test 1.3280 only to retreat into 1.3200 in Asia on the Brexit news wobble. EURGBP found support as expected around 0.8880, and since at 0.8900, with highs now being posted of 0.8960 on the general GBP wobble. GBPJPY broke down through 140.50 but found some decent support into 140.00 down there and since rallied to test 141.25 again before falling again on the general GBP retreat to look at 140.20.
I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever. Patience continues to be a virtue and entry level key as always. I still expect to continue seeing dip demand though should we retreat further.
USDJPY continues to range 106.00-106.50 still amid the generally variable risk and USD combo. EURJPY has traded 126.00-125.30-126.00 again but since finding support at 125.60 once more on the retreat amid the variable risk tones. EURUSD found support at 1.1780 again and sionce rallied to 1.21855 before failing again as we continue to range. USDCHF found a base at 0.9100 again (probably SNB still) but equally failed at 0.9160 as EURUSD rallied before popping a little higher this morning on the reverse correlation with EURCHF underpinned still.
AUDUSD broke down through 0.7250 but since rallied to test 0.7300 again as the jury remains out on the extent of this USD demand.USDCAD is ranging 1.3050-1.3150 amid the variable USD/risk plays but on the rise again as Saudi oil price cuts make an impact.
Markets are ever-fickle but good two-way pips to be had so don't forget to take advantage of my 1-2-1 mentoring sessions if there's areas of trading these markets or how to make best use of the order boards and expiries, that you might need some further help with.
I wish you good trading and let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.47 BST