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  • Writer's pictureMike Paterson

Pound spooked again with FX markets still in skittish mood

The busy week forecast is living up to its billing so far with FX markets showing ongoing fragility albeit in tight ranges still.

Trump/Kim talks have concluded amid much hype but the reality/impact is yet to be fully evaluated. Attention now turns to a raft of economic data and the US Fed/ECB latest decisions tomorrow/Thursday.

GBPUSD yesterday fell on weak industrial production and trade balance data to test the 1.3350 support area I've highlighted a few times lately. 1.3400 proved a sticking point on the rally and down we went again to post fresh lows of 1.3342. Currently back up to 1.3415 helped by some GBPJPY buying interest as risk-on sentiment returns after the Trump/Kim declarations.Immediate support/buying now into 1.3380, then the 1.3340-50 line that's been holding. UK jobs/wages data just out show little change of note and the Pound has responded accordingly.

Keep selling those rallies for the moment but respecting the dip demand too as I've been mentioning as we continue to range-trade so don't get greedy. Traders buying the GBP dips currently seeing some value too of course therefore.

EURGBP has been up to test the 0.8830 sell interest (GBPEUR down to 1.1320) a couple of times as the Pound wobbled and on general EUR demand. Buyers poised into 0.8780 then 0.8750 and 0.8730 still. Sellers between 0.8820-30 again then 0.8850. Overall the Pound is a little fragile but contained for the moment.

EURUSD has rallied again to post 1.1810 with help again from EURJPY,EURCHF and the EURGBP demand.Buyers now into 1.1750 and 1.1730 with more interest into 1.1700. Sellers still poised around 1.1830, 1,1850 and 1.1880-00.

USDJPY has been up to test the 110.50 resistance/sell area on the better risk sentiment/Yen selling. Buyers still into 109.80 then 109.50. Sellers around 110.50 still then 110.80-00. USDCHF has been contained as safe-haven plays fade and helped by EURCHF climbing back up to 1.1658

The Aussie, NZ and Canadian $ have all found a bit of dip demand again as the jury still remains out on commodity prices.AUDUSD has buyers at 0.7580 still as I've been higlighting and that level has held again. More buyers into 0.7550 then 0.7530.Sellers at 0.7630 and 0.7650 still. USDCAD buyers now around 1.2960 then 1.2920. Sellers around 1.3030 then 1.3050 still.

Fickle and fragile markets prevailing behind all the noise and hype 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   1.3411 EURUSD   1.1800 EURGBP   0.8799 GBPEUR   1.1363 USDJPY   110.31 USDCAD   1.2991 USDCHF   0.9840 GBPAUD   1.7604 GBPCAD   1.7421 GBPCHF   1.3197 GBPZAR   17.6416 GBPHKD   10.3975 EURHKD   9.1495

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