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Softer US Dollar again amid Trump talk on currency manipulation

Monday 23 July 2018


With Trump continuing his tirades over rate hikes and currency manipulation (Tweet:"China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S. is raising rates while the dollars gets stronger and stronger with each passing day") and the BOJ tending toward tapering we've seen some general US$ weakness as a new week gets underway

GBPUSD has held 1.3000 this time around and rallied to post 1.3159 in Asia on the general USD selling following the Trump comments. Immediate support/buying interest now around 1.3120,1.3100 then 1.3080 and 1.3050.Sellers now poised around 1.3160 then 1.3180-00 and 1.3230-50.Keep selling the rallies but caution advised for the moment amid the latest Trump talk and the fact that we came a long way down last week in relative terms given recent tight ranges.

EURGBP has slid a little further to post 0.8919 ( GBPEUR up to 1.1213) but should remain underpinned as he head into the usual month-end buying. Sellers now poised around 0.8950 then larger between 0.8980-9000 still. Buyers at 0.8900-10 then 0.8875-80 and 0.8850-60. Keep buying the dips.

EURUSD fell again but held the 1.1580 area I highlighted and been back up to 1.1674 on the US$ selling before retreating.Buyers lined up now around 1.1620 then more into 1.1600 and 1.1580 again. Sellers poised at 1.1680 then 1.1700-20.

USDJPY is still finding sellers as risk-off sentiment generally prevails amid equity market wobbles, plus those Trump comments, Japanese exporters always happy to offload into the rallies and the BOJ seemingly shifting monetary policy a tad.Buyers now between 110.75-80, 110.50 then 110.30 and 110.00.Sellers now poised around 111.20, 11.50 with larger interest into 112.00. USDCHF has fallen to test 0.9900 again amid the general US$ sales and safe-haven CHF buyers helping to cap as I've warned lately.

AUDUSD held a test on the 0.7300 barrier option area and has rallied back up through 0.7400 but once again running into sellers ahead of 0.7450. Buyers now around 0.7400, 0.7380 and 0.7350. Immediate sell interest at 0.7450 still, then 0.7480 and 0.7500. After another dip USDCAD remains on the back foot but is still trying to make its mind up with sellers now around 1.3160 and 1.3200 with buyers poised at 1.3100 1.3080.

Fickle and volatile markets still prevailing so get your orders in to take full advantage of these moves.

A fantastic week-end of sport to enjoy as this wonderful Summer of sport continues at pace.Congrats to Lewis Hamilton for his superb levels of focus and determination, not to mention ability, and Francesco Molinari who became the first Italian to win the Open Golf title. Bring on the Ryder Cup, with Tiger back on the leader board too.

Have a good week out there one and all.

Interbank Rate 07.40 BST GBPUSD   1.3136 EURUSD   1.1725 EURGBP   0.8925 GBPEUR   1.1170 USDJPY   112.03 USDCAD   1.3134 USDCHF   0.9916 GBPAUD   1.7704 GBPCAD   1.7254 GBPCHF   1.3026 GBPZAR   17.6485 GBPHKD   10.1828 EURHKD   9.0893

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