Risk sentiment improves but markets still fragile
Friday 11 January 2019
Equity markets and oil prices are bouncing again and that's brought back a little currency safe-haven selling to close the week as European trading gets underway with JPY and CHF leading the way again. Currency markets remain fickle and fragile still but tightly bound though as I've been warning with Trump still vocal on a number of issues and Brexit still providing headlines. US CPI data at 13.30 GMT in focus too today.
GBPUSD has failed into 1.2770 and dipped this morning to post 1.2731 amid some general USD demand. I remain GBP bearish overall and happy to jump on rallies then buy back in the dips while remaining core short. UK data at 09.30 GMT to feed the algos includes Manufacturing/Industrial Production and Trade Balance.
EURGBP continues to look underpinned as GBP falters and has now cleared out those 0.9050 offers to post 0.9061 (GBPEUR down to 1.1034).
EURUSD continues to see good two-way business but looks underpinned still around 1.1500 for the moment. EURJPY and EURCHF demand also helping to provide support while USDJPY has found support into 107.80 again helped by some risk-on sentiment and general USD demand but continues to find sellers around 108.50 with Japanese exporter JPY demand notable (I've warned recently of the repatriation need before April year-end).
USDCHF has also rallied on the CHF supply/EURUSD dip combo to post highs of 0.9846 after finding some renewed support from that EURCHF dip demand I've been highlighting above 1.1220 to post highs of 1.1336 with the SNB ever-watchful.
AUDUSD continues to look underpinned helped by ongoing gold demand and USDCNH but still has rally sellers poised while USDCAD has fallen again to post 1.3183 as oil prices firm and CADJPY buyers return.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
The mighty Shrimpers of Southend United FC remain at the hallowed Hall but back in league action after a very dismal cup display on Tuesday. Let's hope for better things tomorrow.
Have a great week-end out there one and all.
Interbank Rate 08.40 GMT GBPUSD 1.2740 EURUSD 1.1528 EURGBP 0.9048 GBPEUR 1.1050 USDJPY 108.26 EURJPY 124.83 GBPJPY 137.93 AUDUSD 0.7216 EURCHF 1.1325 USDCAD 1.3187 USDCHF 0.9822