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Risk on the rise as we close another week

Friday 17 January 2020

Defying gravity imho but the trend is your friend they say and right now the trend is stronger risk sentiment and a general feel-good factor with the Pound also brushing off interest rate concerns that we saw earlier in the week. China GDP sprang no negative surprises and that's helped add to this latest relief rally too. UK Retail Sales expectations/leaks also helping GBP pairs this morning but now having another reality check post-release.


GBPUSD has been up to test 1.3100 helped by the GBPJPY demand but sellers there holding the rise for the moment as we wait on the data. As I said yesterday I see another rally-sell opportunity in theory but some caution required for the moment.Good two-way business/pips to be had still I believe though. We've now seen a big UK retail sales data miss and the Pound has duly retreated to reward all the rally sellers. A classic case of buy rumour/sell fact.


GBPUSD is now testing the 1.3045-50 bids as I type having posted 1.3118 in a rush prior to the data while EURGBP has held 0.8500 (a large lump of option expiries today) to rally and post 0.8530.GBPJPY has taken out the bids at 143.80-00 to post 143.68 after posting highs of 144.54


I stay poised to sell GBP rallies and buy back in the dips as ever but still see some good two-way business as we continue in these tight ranges..


EURUSD has been tightly bound, contained once again by large option expiry interest at 1.1100,1.1120-25 and 1.1150 while USDJPY has held 110.00 since those large expiries rolled off there yesterday and threatening to break up through the pivotal 110.30 area.EURJPY has also rallied on the better risk (FX markets ever fickle) and remains underpinned still.USDCHF has found some support now around 0.9620-30 amid the better risk but with sellers still poised as EURCHF remains tightly bound.


AUDUSD continues to find good demand/support at 0.6880-85 and holding falls yet again helped by the AUDJPY demand but sellers around 0.69235 poised still.USDCAD has held 1.3030 and remains tightly bound.


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


Long journey up North tomorrow for the still-unbeaten-in-2020-Shrimpers, and fans, but we go looking to bring at least a point back as our battle for League One survival continues.


England's cricketers on top in South Africa with a fine contribution of 44 from opener Zak Crawley who I had the pleasure of helping as a youngster during his time at my club Sevenoaks Vine CC. Top work Zak, despite my assistance and advice!


Have a good day/week-end out there one and all.


Interbank rates: 09.40 GMT

GBPUSD   1.3054

EURUSD   1.1128

EURGBP   0.8530

GBPEUR   1.1728

GBPAUD   1.8901

GBPCAD   1.7027

GBPJPY   143.82

USDJPY   110.19

EURJPY   122.61

EURCHF   1.0741

AUDUSD   0.6904

USDCAD   1.3045

USDCHF   0.9653


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