Risk-on returns as Biden confirmed President-elect
Monday 9 November 2020
Joe Biden did indeed finally get across the line and now becomes US President-in-waiting while Trump contuinues with his claims of fraudulent voting and yet to concede.
Equity markets have performed strongly in Asia and early Europe bringing some risk-on sentiment amid the generally softer USD still but still fragile and lessening this morning. COVID very much in the mix and Brexit casting its shadow over UK and Europe too this week too as talks get underway again.
GBPUSD has tested 1.3200 but since retreated to test fresh support lines establishing around 1.3140 with GBJPY also in retreat having broken up through 136.00 but equally not holding above 136.60 either. EURGBP is holding 0.9000 still in the latest retreat this morning after once again holding 0.9060 on Friday but now back at 0.9030 and helping to cap GBPUSD a little.GBPJPY capped at 136.60 after rallying from a base at 135.80 but finding demand below 136.20 in the latest retreat amid the varaible risk/USD sentiment.
No change in my basic view and I stay poised to sell GBP rallies as my preferred side and buy back in the dips as ever. Patience continues to be a virtue and rally-selling is bringing some reward but entry level key as always. I still see dip demand though amid the current USD supply but risk sentiment still in a state of uncertainty overall.Brexit remains in the room and the negative impact of COVID still in the mix.
USDJPY has been contained 103.20-70 amid the softer USD tones/better risk plays with JPY selling balancing out the USD supply. EURJPY has now capped at 123.20 but tightly bound since with support being found below 123.00. EURUSD has capped at 1.1900 helped by very large option expiries there today but still remains underpinned for the moment amid the softer USD tones. USDCHF dipped further to new lows 0.8984 not seen since that fateful January day in 2015 but found support down there as expected as EURUSD caps again and with the SNB still ever watchful.
AUDUSD has found 0.7300 a step too far again and retreated but holding 0.7275 atm while USDCAD capped at 1.3080 but holding 1.3000 so far in the latest retreat amid the softer USD but firmer oil tones.
Markets are ever-fickle so don't forget to contact me if there's areas 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: 08.35 GMT