Risk sentiment fragile again
Wednesday 11 June 2019
Another hump day and with it comes some weaker risk sentiment amid Hong Kong protests over changes in Chinese extradition laws. US CPI data risk at 12.30 GMT also adding to the uncertainty given the current market paranoia over potential Fed rate cuts and FX pairs continue to trade tightly.
GBPUSD found some dip support around 1.2680 yesterday then found further support after some relatively decent wages/jobs data and has now finally broken back up through the 1.2730 resistance after a few good holds.EURGBP rallies keep running into sellers and now dipping back down through 0.8900 (GBPEUR up through 1.1235) as I type adding to the general bid under GBP. GBPJPY remains range-bound.Underpinned again with core pairs both finding dip demand but sellers remain poised.
I remain GBP bearish overall and continue to rally-sell as my preferred strategy amid all the uncertainty/indecision including Brexit but respecting the current demand and therefore happy to buy back in the dips as always.
EURUSD has large option expiry interest again today at 1.1300, 1.1325 and 1.1350 which should help contain range but the pair still looks underpinned for the moment helped by EURCHF and EURJPY dip demand. USDJPY failed at the 108.80 resistance helped by softer risk and USD but similarly finding support around 108.30 still. USDCHF is finding some dip demand despite the the EURUSD demand with EURCHF making steady progress higher supported by the usual dip demand with the SNB ever casting their shadow as I repeatedly point out.
AUDUSD is still making its mind up and tightly bound with some Gold-rally support but equally sellers remaining poised on the bleaker domestic outlook while USDCAD remains on the back foot having failed above 1.3300 but tightly bound with support into 1.3230 still.
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 Rate 08.27 BST