Ranging still as jury remains out
Tuesday 26 November 2019
Yes folks, it's definitely more of the same ol' story out there as markets and algos wait to be inspired. Comments from Fed's Powell and reported positive vibes on US-China trade talks have done little to get prices moving but we've seen GBP rallies capped by some wobbly General Election polls for the UK Tory government.
I'll happily repeat what I said yesterday to help hammer home the point/s.I believe that fragile and fickle conditions continue to prevail globally overall but we can only trade what's in front of us. As I also repeat on many occasions, don't over-analyze and don't get greedy. FX pairs going nowhere in a hurry while all the global uncertainty remains unresolved.
GBPUSD rallied yesterday helped by some GBPJPY and GBPCHF risk-on demand but has held 1.2920 and that has become a decent line on the topside now as we continue to range tightly with 1.2820 having previously supported the downside. EURGBP retreated to post lows of 0.8523 (GBPEUR up to 1.1731) amid yesterday's GBP demand and general on-going Euro supply but has since bounced to 0.8560 (GBPEUR down to 1.1677) as GBP falls again this morning and with the usual month-end BUBA demand now in play. GBPJPY also continues to see good two-way trading amid the variable risk plays.
I will continue to rally-sell GBP as my preferred strategy overall too amid the ongoing Brexit/Election uncertainty but happy to buy back in the dips as ever. In essence the general uncertainty and can kicking continues and for me that's still Pound negative overall. Remember we're ranging still so don't get too greedy whatever your bias.
EURUSD remains on the back foot but tightly bound still with 1.1000 support holding for the moment. USDJPY remains underpinned but equally finding rally sellers poised, this time around 109.20 again as the range stays tight.USDCHF remains underpinned still on the stronger USD/risk combo and with the SNB being ever vigilan but tempered again by some EURCHF supply with the Euro generally on the back foot.
AUDUSD remains on the back foot but tightly bound with a few option expiries at 0.6800 now in play today along with RBA governor Lowe currently speaking. USDCAD continues to trade tightly too around 1.3300 amid the variable USD/risk sentiment but firm oil prices helping to temper the dip support.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Have a good day out there one and all.
Interbank rates: 08.28 GMT