Some risk-off sentiment returns
Friday 21 February 2020
It's a roller coaster sentiment ride out there right now in the ever-fickle world of Forex and we've seen some risk-off return which has helped brought some Yen demand back into play. There's still some way to go in any correction/reversal for the scenario to change too much in the immediate term with talk of Japan's massive GPIF fund looking to buy more USD still in the mix. Mixed German and French flash PMI data just out and the Euro has taken some positives but sellers still poised. UK flash PMI numbers out next at 09.30 GMT and as ever it will be the services sector that warrants most attention given the sector's 80+% contribution to GDP.
GBPUSD has found support around 1.2850 where I took some profit yesterday as per my tweet and now some demand building at 1.2870 again as we bounce to test 1.2920-30 again ahead of the data. EURGBP yesterday failed at 0.8400 (GBPEUR support 1.1905) and helped support GBPUSD also as per my tweet but has found some dip demand again with the Euro generally also finding support even with EURJPY sliding back a little. GBPJPY failed again around 144.50 but has since found support at 143.80 in this ever fickle world of FX and now posted 144.38.
I stay poised to sell GBP rallies and buy back in the dips as ever.Still ranging overall. Be ready with your entry/exit levels at the data release and let the algos do the work as ever. Some demand pre-data release may be pre-empting decent numbers so perhaps a case of sell fact. We'll see soon enough.
USDJPY finally found a top into the 112.30 offers I mentioned yesterday but is finding support again this morning at 111.50. As I said earlier, i think we need to see a deeper correction to be sure the rally/Yen weakness is over so we should so some good two-way business for the moment.EURJPY dip demand also prevailing at 120.50 for the moment after capping above 121.30 yesterday with core pairs both finding a few bids but with sellers also ever-ready.EURUSD holding 1.0780 again in its latest retreat but rally sellers poised still.USDCHF finding support at 0.9800 with EURCHF still holding around 1.0600 with the SNB casting a shadow still.
AUDUSD has retreated to deeper 2009 lows of 0.6586 after wobbly PMI data and some AUDJPY selling again while USDCAD is still ranging amid the cross plays/oil price and risk impact and again bounced from 1.3230 but failing into 1.3270.
Fickle Forex markets ever prevailing so be ready to jump on moves with your entry/exit levels and orders as always.
Southend remain at the hallowed Hall tomorrow for their third home game in a row and we must hope for some return from it. Off the field though, it remains a very sad story.
Have a good day/weekend out there one and all.
Interbank rates: 08.50 GMT