Snoozing Summer markets prevailing
Wednesday 30 June 2021
As I said yesterday we begin another day with FX pairs still ranging, equities and commodities still underpinned and Bitcoin steady again. Some JPY demand notable again though along with some general USD demand as we head into a currently very quiet month and H1 end.
USD and risk sentiment remain variable/fragile though so patience and discipline are key of course and not being greedy, as ever. The always over-hyped NFP data on Friday will be in focus this week as markets continue to try and second-guess CBs on inflation.
GBPUSD: Bids at 1.3800 now holding the latest retreat and pips banked. I remain a rally seller but still expecting dip demand. Keeping an eye on EURGBP and GBPJPY as always per my tweets.EURGBP: 0.8600 broken but sellers still prevailing as GBPUSD finds support into 1.3800.GBPJPY: That old line at 153.20 broke in the latest retreat and testing 152.65 so far which is adding to the general GBP supply.The retreat still proving my ongoing short GBPJPY position across core pairs to be the correct one.
I remain a GBP rally seller across the pairs but being patient as the new week reveals itself. Risk to the downside though still overall.
EURUSD: Finding support at 1.1880 as expected atm having broken through 1.1900 with no visible option support now until Friday. USDJPY: Still on ther back foot from JPY demand but underpinned by the general USD buying.Finding support around 110.40 but sellers,including me, still poised in the rallies as JPY demand evident on the crosses.EURJPY: 131.30 forming a good base now but rally sellers still poised into 132.00 and 132.20.USDCHF: Underpinned at 0.9200 now as EURUSD retreats further with the SNB ever vigilant but sellers at 0.9220-30 helping to cap atm.EURCHF: Holding 1.0940 still with SNB shadow/help ever present but sellers poised into 1.0980 still too.AUDUSD: Capping now into 0.7550 amid USD demand and growing COVID concerns. Decent Put options interest in play today. USDCAD: Strong support area now developing at 1.2360-80 helped by the general USD demnd and CADJPY selling still notable.
Deep joy to see England's glorious Euros victory. Is it really now coming home via Rome ?
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.32 BST