Softer Greenback tones but all ranging still
Monday 17 August 2020
US Retail Sales data on Friday was inconclusive, as indeed all data is right now given the shifting sands and uncertain path ahead, and we continue see some variable risk/USD sentiment with FX pairs ranging still amid softer Greenback tones overall. COVID resurgence remains a real threat.
GBPUSD broke up through 1.3125-30 but failed into the next tranche of sellers at 1.3150 and retreating below 1.3100 as I type. EURGBP duly found support into 0.9000 where we had some option expiries I higlighted on Twitter but rallies since have failed at 0.9060 so far. GBPJPY found a cap at 140.00 this time after holding 139.40 and trading back down there as I type.
I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever.Patience will continue to be a virtue and entry level key as always. I still expect to continue seeing dip demand though as we continue to range. Brexit trade talks in focus again this week.
USDJPY remains range bound 106.30-80 amid the variable risk and USD sentiment.EURJPY found support at 125.75 this time on the retreat but found sellers at 126.50 and retreatig again as I type.EURUSD has tested 1.1860 after holding 1.1780 with the help of large option expiries but remains underpinned at 1.1830 as I type amid the softer USD tones. USDCHF failed at 0.9120 again (where I've been noting offers building) as EURUSD rallied and with EURCHF still ranging with the SNB lurking and since back down to look at 0.9060.
AUDUSD found support at 0.7130 again but equally failing into 0.7200 still while USDCAD found support below 1.3200 but equally can't get back above 1.3275 amid the softer USD.
Markets are ever-fickle but good two-way pips to be had so don't forget to contact me if there's areas of trading these markets that you might need some further help with.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.28 BST