Some wobbly risk tones emerging again
Wednesday 8 September 2021
US Dollar demand continued for much of the last 24 hours but we're seeing some softer USD snd risk tones as European markets get underway with equity/commodity markets and US yields falling with traders continuing to second-guess the central banks.JPY and CHF demand returning with commodity currencies weakening.
Latest Bank of Canada decision today at 14.00 GMT then BOE's Bailey & Co testify before the Parliamentary Select Committee at 15.00 GMT. ECB looming tomorrow too of course.
As we continue to range remember that patience and discipline in trading are key as ever, and not being greedy.
GBPUSD: A decent retreat yesterday amid the firmer USD and generally soggier GBP tones and pips banked at various stages per my tweets. I remain a rally seller while keeping an eye on EURGBP and GBPJPY as always.
EURGBP: Supported now at 0.8580 after failing at 0.8620 yesterday on its decent run highr that helped push GBPUSD lower.GBPJPY: Support at 151.50 held the retreat from 152.20 and we've failed up there again as risk sentiment softens.
I remain a GBP rally seller across the pairs but being patient as ever. These are risk sentiment markets and ever fickle so good/tight position management essential.
EURUSD: Tested 1.1885 again yesterday after holding 1.1860 and now teesting 1.1820 as I type. USDJPY: 109.80 held the latest retreat and eventually broke 110.00 then the larger 110.20 line to set up a test of 110.50 (where we also have good-size option interest tomorrow) before falling back to 110.17 this morning amid the risk-off JPY demand. EURJPY: 130.20-30 still supporting after failing in the rally this time at 130.70 amid the risk-off selling. USDCHF: Holding 0.9160 this time as EURUSD retreats and with the SNB ever vigiliant and EURCHF underpinned but failing above 0.9200. EURCHF: 1.0860 now providing support with SNB shadow ever present but failing at 1.0900 amid the risk-off supply.
AUDUSD: A steady retreat into 0.7380 and now 0.7360 after latest rally failed at 0.7400 amid the softer risk/commodity tones. USDCAD: A strong rally amid the firmer USD/softer oil tones and some option contract support above 1.2600 today having taken out the 1.2580 sellers. CADJPY risk-off supply giving it a further push higher and now testing 1.2700 as I type. Latest BOC rate/policy decision out today at 14.00 GMT
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.20 BST