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  • Mike Paterson

Powell on parade

Thursday 27 August 2020

Yes folks, the eagerly awaited/over-hyped (we won't know which until later) Jackson Hole appearance by US Fed Chairman Powell today at 13.10 GMT is almost here. The full agenda/list of speakers can be found at https://www.kansascityfed.org/publications/research/escp/symposiums/escp-2020. Worth noting that there are a few large options expiries in play as he speaks.


Vsriable risk/ generally softer USD sentiment still prevailing as markets play the second-guessing game. Good two-way pips to be had still meanwhile.


GBPUSD duly held 1.3120 then above 1.3160 then 1.3180 amid the better risk/GBPJPY demand/EURGBP supply as we see more rising bases as I warned yesterday but rally failing at 1.3230 so far.

EURGBP finally broke down through the 0.8980 support but so far the previous base at 0.8940  holding for the moment as month-end approaches.GBPJPY found a new base at the 139.60 line I mentioned yesterday amid the better risk tones and made another attempt to test that line at 140.20-30 again before retreating but since finding good demand at 139.80.


I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever.Patience will continue to be a virtue and entry level key as always. I still expect to continue seeing dip demand though as we continue to range.


USDJPY has retreated down through 106.00 into 105.80 but cotinues to trade tightly with

EURJPY around 125.50 as the Euro remains a little soggy overall and risk wobbles. EURUSD continues to hold 1.1775-80 but equally can't get back above 1.1850 amid the variable risk and cross-pair impact.  USDCHF failed at 0.9120 as EURUSD based at 1.1780 with EURCHF once again the anchor but also seeing some EUR sell interest.


AUDUSD based at 0.7185 where we also have large option expiries today and now making a move back above 0.7230 and 0.7250 on the USD supply but we continue to range overall.USDCAD capped at 1.3200 on the general USD selling but found support this time at 1.3130 as we continue to range amid steady oil prices and variable risk.


Markets are ever-fickle so don't forget to contact me 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.


Let's continue to be careful out there in all things. Staying safe must be our main priority still.


Interbank rates:  08.45 BST

GBPUSD   1.3223

EURUSD   1.1834

EURGBP   0.8953

GBPEUR   1.1167

GBPAUD   1.8218

GBPCAD   1.7367

GBPJPY   140.12

GBPZAR   22.2670

GBPHKD   10.2495

USDJPY   106.01

USDZAR   16.8475

EURJPY   125.43

EURCHF   1.0736

EURHKD   9.1784

AUDUSD   0.7253

USDCAD   1.3141

USDCHF   0.9072


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