Sterling still on the slide
Wednesday 17 July 2019
Another day, same soggy Pound amid all the Brexit debacle and political uncertainty. Adding to the uncertain scenario we now have reports that if Boris becomes PM as expected then he will use his first Queen's Speech to shut down Parliament and so prevent MPs from blocking a no-deal Brexit. Summer doldrums may be underway in other currencies but not for the Pound helped lower by the ongoing safe-haven GBPJPY supply plus EURGBP demand. Elsewhere the USD jury remains out as we wait on the US Fed at the end of the month and trading ranges remain tight.
GBPUSD has fallen further to test 1.2380 this morning after a solid day of falls yesterday despite better UK wages/jobs data. EURGBP testing 0.9050 was also helping to push down Cable but both levels holding for the moment. EURGBP continues to look underpinned with EURUSD still better supported in the dips but the rally has failed at 0.9050 (GBP support 1.1050) and retreating as I type.GBPJPY sellers remain poised still as I've been warning and now broken down through the decent demand at 134.50 to test 134.00 despite USDJPY now finding support above 108.00.
I remain GBP bearish overall still and will continue to rally-sell as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout but happy to buy back in the dips as always. UK data risk in the shape of CPI at 08.30 GMT but (same as yesterday) will only provide temporary impact once the algos have done their work.
EURUSD is finding dip support again but similarly still finding rally sellers too as we continue to range tightly amid much cross-currency play. USDJPY has found support once again amid some general USD demand but fragile risk overall also continue to help cap rallies with Yen buyers still poised.USDCHF has also seen the usual dip demand while capped by EURCHF supply into 1.1100 still.
AUDUSD remains tightly bound having failed at those good-size offers at 0.7050. with demand building at 0.7000 where we have large option expiry interest today.USDCAD has rallied steadily again amid the general USD demand to post 1.3093 but remains tightly bound.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Have a good day out there one and all.
Interbank Rate 08.14 BST