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  • Writer's pictureMike Paterson

Steady as we go again

There's still an air of risk-off sentiment floating around but tight trading ranges prevail with large option contract interest very much in play.

GBPUSD failed to hold below 1.3200 yesterday and rallied back to look at 1.3250 where we had the large option contract interest I highlighted. Since then though we've been back down to 1.3188 helped by GBPJPY selling and EURGBP month-end demand. Immediate support/buying at 1.3180-85 and between 1.3150-60. Sellers now around 1.3230 with larger between 1.3250-60 still, the 1.3280 and 1.3300. Pound rally sellers still prevailing as per my recommendation with Brexit and UK government turmoil also never far from the headlines but we're still going nowhere in a hurry for the moment.

EURGBP has been up to test the 0.8820-30 sell interest again (GBPUSD down to 1.1335) with the usual Bundesbank month-end demand to pay for the UK's EU contributions playing out.Buyers  poised at 0.8780 still, 0.8750 and larger between 0.8720-30.Sellers still between 0.8820-30 then 0.8850.

BOE governor Carney speaking around 11.00 BST but speech is more focussed on today's Financial Stability Report. Markets and traders will be looking for interest rate hike clues though.

EURUSD has been down to look at 1.1620 support 1.1720 helped by some EURJPY and EURCHF selling. The pair has large option contract interest rolling off today between 1.1600 and 1.1690 that will help to contain the range still. Buyers now around 1.1620 still then 1.1600 and 1.1580. Sellers initially around 1.1650 then 1.1680 and 1.1700.

USDJPY rallied to 110.22 only to run into sell interest again and since retreated helped by some safe-haven Yen demand has held the 109.30 support again. Buyers still lurking down there and 109.00 then 108.80. Sellers around 109.80 then 110.00 and 110.20-30. USDCHF remains steady with EURCHF finding contained too.

The Aussie, NZ and Canadian $ have all found a few sellers again with the Aussie $ still suffering from the Chinese fallout. AUDUSD has buyers around 0.7350 and 0.7330. Sellers now into 0.7400 and 0.7430. USDCAD buyers at 1.3280 still then 1.3250 and 1.3200. Sellers around 1.3330 then 1.3350.

Uncertain markets prevailing still so get your orders in to take full advantage of the currently limited moves.

Have a good day out there one and all.

Interbank Rate 09.50 BST GBPUSD   1.3205 EURUSD   1.1634 EURGBP   0.8812 GBPEUR   1.1348 USDJPY   109.83 USDCAD   1.3319 USDCHF   0.9913 GBPAUD   1.7903 GBPCAD   1.7585 GBPCHF   1.3090 GBPZAR   18.0495 GBPHKD   10.2378 EURHKD   9.0217

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