Risk variable again amid US-China trade talk uncertainty
Wednesday 6 November 2019
I bang on about the global uncertainty and variable risk sentiment every day and we've seen another pause for thought/reality check as US-China trade talks seem to hit another hurdle. Meanwhile the UK General Election officially gets underway as Parliament is dissolved and the posturing/extreme bs begins in earnest.
GBPUSD failed above 1.2900 amid all that option expiry interest I warned about and has fallen to test 1.2850-60 bids/support before bouncing but still can't get back above 1.2900 for the moment.EURGBP still ranging too with support below 0.8600 again but sellers poised as the Euro weakens generally.GBPJPY also continues to see good two-way trading and tightly bound but underpinned still.
I will continue to rally-sell GBP as my preferred strategy overall too amid the ongoing Brexit/Election uncertainty but always happy to buy back in the dips still. A decent case for GBP longs again in the dips if this tight range continues so take your pick. In essence the general uncertainty and can kicking continues and for me that's still Pound negative. I make no apologies for trawling out the same thoughts because for me nothing has really changed.
EURUSD has fallen further amid some Deutsche Bank chitter-chatter to post 1.1067 helped by some ongoing USD demand while USDJPY has rallied further on yesterday's USD demand and the better risk tones and got through the decent offers at 109.00 only to fall again.USDCHF has posted fresh recent highs of 0.9933 as EURUSD falls and still looks underpinned given the SNB being ever vigilant.
AUDUSD remains tightly bound amid the US-China uncertainty but holding 0.6880 bids/support again but sellers poised around 0.6925-30 still.USDCAD has found itself bound again but underpinned by softer oil prices.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Don't forget too that I offer 1-2-1 mentoring if you might need some further help with how to best assess current markets.
Have a good day out there one and all.
Interbank rates: 08.28 GMT