• Mike Paterson

Range trading amid variable risk sentiment still.

Friday 3 July 2020

Yesterday's US NFP data helped risk sentiment a little but the good vibes were shortlived as US coronavirus case rose bt record levels for the third day in a row.

FX pairs had a ranging day overall amid those large options flows and variable risk, and the theme continues in Europe so far. US on hols today for Indpendence Day celebrations.

GBPUSD failed above 1.2500 a couple of times but support now coming in at 1.2435 and we are back above 1.2460 as I type.EURGBP tested 0.9000 a couple of times but hasn't broken. Equally it hasn't broken back up through 0.9030 either.GBPJPY capped at 134.75 and now testing 133.80 on the retreat amid softer risk sentiment.

I stay poised to sell GBP rallies overall and buy back in the dips as ever but patience continues to be a virtue and entry level key as always. I still expect to continue seeing some dip demand but cross-flows and Brexit will produce a mixed bag moving forward.

USDJPY has been tightly bound again between 107.30-60 amid the variable USD and risk sentiment. EURJPY found a cap at 121.50 and has retreated to 120.70 as I type amid the risk-off plays. EURUSD duly found those 1.1300 offers and large expiries a step too far and failed to hold the early gains above there then retreated back through 1.1250 after expiry time to now post lows of 1.1224. USDCHF held 0.9420 with the SNB ever vigilant in the dips and has rallied to 0.9470 as EURUSD retreats but tempered by some EURCHF supply. USDCHF support now at 0.9450 and seems like a good line developing there.

AUDUSD duly capped at 0.6950 but held 0.6900 amid those lose large options rolling off at both ends but still looks underpinned albeit ranging. USDCAD failed above 1.3620 and now down to 1.3560 amid the variable oil price and risk sentiment.

Lots going on right now, and the foreseeable future, so don't forget to contact me if there's areas of trading these volatile 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. Enjoy your week-end.

Interbank rates:  08.35 BST

GBPUSD   1.2443

EURUSD   1.1231

EURGBP   0.9025

GBPEUR   1.1079

GBPAUD   1.7945

GBPCAD   1.6876

GBPJPY   133.80

GBPZAR   21.1338

GBPHKD   9.6602

USDJPY   107.50

USDZAR   16.9544

EURJPY   120.74

EURCHF   1.0632

EURHKD   8.7194

AUDUSD   0.6933

USDCAD   1.3564

USDCHF   0.9465

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