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  • Mike Paterson

Softer US Dollar tones prevailing again

Tuesday 28 August 2018

US Fed chair Powell's less than hawkish keynote speech at Jackson Hole on Friday left USD bulls disappointed and the Greenback lower across the board as another month draws to a close. Trump's new trade deal with Mexico, uncertainty over a deal with Canada and the end of NAFTA also very much in the picture too.

GBPUSD has rallied to test 1.2900 again after holding decent support around 1.2800 but the usual month-end demand expectations in EURGBP are helping to cap along with a general softness in the Pound with Brexit concerns still in focus.Immediate support/buying interest now around 1.2860 then more into 1.2830 and 1.2800.Sellers  around 1.2900-05, then 1.2920-30 and 1.2950 still.Good two-way business to be had but I prefer to sell the rallies still.

EURGBP remains underpinned as I've been warning of late and with the added impetus of that month-end demand we've now seen the pair testing 0.9075-80 (GBPUSD support 1.1015). Sellers still at 0.9075-80, then 0.9100-05 and 0.9120. Buying interest now at 0.9050 then more into 0.9030 and 0.9000 still.

EURUSD has surged to test 1.1700 amid some renewed Euro demand generally too. Sellers still around 1.1700 with a few option contracts rolling off today then 1.1730 and 1.1750-60.Buying interest building between 1.1650-60 then more into 1.1625-30 and 1.1600.

USDJPY has failed above 111.30 again but finding support around 111.00.Sellers still poised at 111.25-30 then larger into 111.50,111.80 and 112.00 still. Buyers now lining up below 111.00 with more at 110.80 and 110.50 again. USDCHF is currently on recent lows at 0.9775 as I type but with EURCHF now holding above 1.1400 and the SNB ever watchful.Sellers remain poised on both though as I've been warning.

AUDUSD has clawed its way back to post highs of 0.7357 before retreating to 0.7322 but on the rise again this morning. Immediate buying interest building around 0.7320 then 0.7300 and 0.7280. Sell interest at 0.7360 then 0.7380-00. USDCAD has fallen again and now down through the good support/demand between 1.2980-1.3000 to test 1.2950. Buyers now into 1.2930 then more at 1.2900. Sellers around the pivotal 1.2980-1.3000 area then 1.3030 and 1.3050. US-Canada trade deal concerns still in focus.

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

An impressive win away from home for the mighty Shrimpers of Southend United while the inner hippy in me was enjoying some wonderful sounds in Southsea. The gale force winds and rain on Sunday adding to the festival experience of course!

Have a good week out there one and all.

Interbank Rate 08.50 BST GBPUSD   1.2890 EURUSD   1.1685 EURGBP   0.9066 GBPEUR   1.1029 USDJPY   111.12 USDCAD   1.2957 USDCHF   0.9781 GBPAUD   1.7552 GBPCAD   1.6703 GBPCHF   1.2611 GBPZAR   18.2687 GBPHKD   9.9936 EURHKD   9.0620


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