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  • Writer's pictureMike Paterson

Softer US Dollar tones continue as another month begins

Tuesday 1 December 2020

Some strange moves to end the month with the expected USD selling seemingly already done as I had warned here and on Twitter and we saw some solid USD demand around the 4pm London end of month fix as traders squared up.

Since then though the USD supply has returned amid firm risk sentiment still to provide some core pair support amid the JPY and CHF supply and that's keeping ranges tight still. Brexit talks continuing this week so we still need to watch out for any notable headlines. Meanwhile the Pound has now made some decent gains ground across the board while the Euro is still finding dip demand after yesterday's sell-off following EURUSD's failure to hold 1.2000.

GBPUSD has finally broken back up through 1.3380-00 this morning so caution should be advised on re-sells for the moment but I'll stay poised in these ever fickle markets. EURGBP failed at 0.9000 again yesterday helping to push EURUSD lower too along the way but holding 0.8930 so far. I remain a dip buyer overall.GBPJPY has broken up through 139.00 as GBP firms and risk sentiment remains positive.

I stay poised to sell GBP rallies as my preferred side and buy back in the dips as ever.Patience continues to be a virtue and rally-selling in GBPUSD is still bringing some reward but entry level key as always. Definitely still expecting dip demand as I've warned for a while now. Brexit still the large elephant in the room.

USDJPY is finding support into 104.20 again after holding 103.80-85 again but has capped at 104.50 now. EURJPY has found some solid support now at 124.50 amid the generally firmer risk and EUR dip demand. EURUSD continues to find support at 1.1920 after failing at 1.2000 yesterday and now testing 1.1980-85 again as I type amid the softer USD/firmer risk plays. USDCHF failed at 0.9100 after rallying from 0.9030 amid the retreating EURUSD yesterday and now testing 0.9050 bids as EURUSD rallies again with EURCHF also firmer with the SNB still ever watchful.

AUDUSD duly failed into 0.7400 helped by those large expiries I mentioned here and on Twitter but has held 0.7330 so far. USDCAD failed above 1.3000 yet again after the rally from 1.2930 helped by that USD demand around the London fix but now retreated back down through 1.2950 on the general USD supply/CAD JPY demand again.

Markets are ever-fickle so don't forget to contact me if there's areas of trading that you might need some further help with.

I shall be away from my desk for most of today fyi so Tweets will be minimal but on my mobile should you need me.I wish you good trading and let's continue to be careful out there in all things. Staying safe must be our main priority still.

Interbank rates: 08.13 GMT

GBPUSD 1.3395

EURUSD 1.1965

EURGBP 0.8944

GBPEUR 1.1180

GBPAUD 1.8174

GBPCAD 1.7337

GBPJPY 139.54

GBPZAR 20.4895

GBPHKD 10.3811

USDJPY 104.32

USDZAR 15.3120

EURJPY 124.83

EURCHF 1.0847

EURHKD 9.2854

AUDUSD 0.7378

USDCAD 1.2960

USDCHF 0.9065

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