Range trading again but US $ remains mostly underpinned
Monday 16 July 2018
A new week under way in these Summer markets and that normally means contained ranges, albeit we now have a market largely driven run by algo boxes and they tend not to spend time on the beach.
GBPUSD held the 1.3100 support/demand area I highlighted again on Friday and has rallied to post 1.3256 before finding fresh sellers and retreating this morning in early trading.Immediate support/buying interest now at 1.3220 then 1.3200, 1.3180 and 1.3150.Sellers still poised around 1.3250 then larger between 1.3280 and 1.3300. Keep selling the rallies with Brexit and UK government turmoil never far from the headlines. Trumps's apparent turnaround on UK relations has done little to assuage trade fears given his tendency to turn on a sixpence.
EURGBP remains underpinned with buyers still lining up between 0.8820-30, 0.8800 and 0.8785.Sellers now into 0.8850 then 0.8880 and 0.8900
EURUSD also rallied to look at 1.1700 only to run into sellers too. Buyers lined up now around 1.1670 then larger into 1.1650 and 1.1620 then 1.1600. Sellers still poised at 1.1700-20 then 1.1750 and 1.1780-00
USDJPY continues to look underpinned but has still capped so far at 112.80 ahead of large barrier option contract interest at 113.00 and retreated to test 112.00.Buyers now around 112.30 then 112.00 and 111.80-85. Sellers around 112.80 still then 113.00, 113.20 and 113.50 where another barrier option lays in wait. USDCHF failed above 1.0060 but is holding 1.0000 as I type but capped again by more sellers on EURCHF between 1.1730-50.
AUDUSD remains underpinned with good bids/support around 0.7350 then 0.7320 and 0.7300 still where large barrier option interest lurks. Immediate buy interest now at 0.7400 and 0.7380. Sellers around 0.7450 capping for the moment then more at 0.7480 and 0.7500. USDCAD remains underpinned but going nowhere in a hurry in a 1.3100-1.3200 range. Sellers at 1.3175-80, 1.3200 and 1.3230 with buyers still poised between 1.3100-30
Fickle and fragile markets prevailing still so get your orders in to take full advantage of these moves.
So hands up who has World Cup withdrawal symptoms already? Was a quite a journey in a number of ways and a real emotional roller-coaster. Congrats to France but two shocking decisions gave them the initiative. Croatia showed again they are a team who will never give up but all in all I'd say France were worthy winners after a slow start. Another young side who will keep England's young lions in reality check mode but it surely promises to be a wonderful contest over the coming years.
Have a good day out there one and all.
Interbank Rate 08.15 BST GBPUSD 1.3245 EURUSD 1.1695 EURGBP 0.8830 GBPEUR 1.1323 USDJPY 112.40 USDCAD 1.3147 USDCHF 1.0009 GBPAUD 1.7813 GBPCAD 1.7410 GBPCHF 1.3253 GBPZAR 17.5194 GBPHKD 10.2688 EURHKD 9.0690