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  • Writer's pictureMike Paterson

Risk-off sentiment prevailing again.

Tuesday 22 January 2019

Equities and oil are generally softer again as European trading gets underway with Huwawei-related noises again from China and we've seen some more risk-off plays in these ever-fickle and mood-swing times. Meanwhile the Pound is still making its mind up amid PM May seemingly locked in and nowhere to go right now and with no clear plans emerging still as I've been warning.

GBPUSD had a quick look above 1.2900 yesterday after the early European hold into 1.2830 that I highlighted in my update but sellers were lurking again and the pair has fallen back to test immediate and fresh support at 1.2850.EURGBP has largely been contained since the retreat back from 0.8860 to 0.8807 (GBPEUR 1.1285 up to 1.1350)

I still remain GBP bearish overall and happy to sell on rallies. UK wages and jobs report out today at 09.30 GMT. No great surprises expected but as always it's wages that remain the focus and most likely to set off the algos if wide of the mark.

EURUSD failed above 1.1380 and has drifted lower to test 1.1350 helped by some EURJPY and EURCHF supply while USDJPY has run into sellers again helped by the risk-off JPY buying but finding some dip demand with bids at 109.30.USDCHF/EURCHF both remain underpinned but equally finding rally sellers too also helped by some safe-haven CHF demand.

AUDUSD also continues to trade tightly but remains fragile with China fall-out/risk in the mix still while

USDCAD has rallied further to 1.3343 as oil prices dip again and with CADJPY supply notable helped by the Huawei CFO affair with the US seeking her extradition from Canada.

Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.

Have a good day one and all.

Interbank Rate 08.13 GMT GBPUSD   1.2872 EURUSD   1.1357 EURGBP   0.8824 GBPEUR   1.1331 GBPAUD   1.8073 GBPCAD   1.7184 GBPHKD   9.9820 USDJPY   109.38 EURJPY   124.22 GBPJPY   140.77 AUDUSD   0.7124 EURCHF   1.1325 USDCAD   1.3340 USDCHF   0.9971 EURHKD   8.8095

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