Still a mixed bag out there
Tuesday 6 April 2021
Yesterday saw some upbeat US data which helped lift equities and risk sentiment but a softer Greenback again as bond yields fell. We've now seen some consolidation and two-way business with EUR demand notable this morning amid some large options interest nearby on EURUSD.
Earlier the RBA left rates and policy on hold as expected but AUDUSD still finding a break of 0.7660 a step too far.
As always in these fickle times be careful with your FX trading. Pick your preferred entry/exit levels and don't be greedy or over-analyze.
GBPUSD: Finally broke up through 1.385 to test 1.3920 as the USD selling took hold helped by better-risk GBPJPY demand. EURGBP demand helping to cap since.EURGBP: Held 0.8465-70 over the holidays and now testing 0.8520-25 resistance as I type amid that general EUR demand and GBP finding a few reality-check sellers again elsewhere.
GBPJPY: Ranging still underpinned by better risk tones although sellers remain poised.
I remain a GBP rally seller across the pairs but still not getting greedy on the retreats. Good two-way pips to be had for the moment still.
EURUSD: Finding a base at 1.1800 atm helped by those large expiries today but runnng into sellers betwwen 1.1820-30. USDJPY: Sellers,including me, prevailing into 110.70-80 again amid the softer USD tones yesterday but finding some JPY supply dip demand still. EURJPY: Still underpinned at 129.80 and now through that next line of offers/resistance.USDCHF: Finding support this time at 0.9360 after yesterday's USD selling-led retreat and EURUSD capping around 1.1820 as I type. EURCHF holding 1.1050 so far with the SNB ever watchful and ready to help.
AUDUSD: Capping at 0.7660 after a decent rally from 0.7600 amid the general USD supply and AUDJPY demand. RBA offered little of note as expected.Some good size option contracts in play today.
Offers: 0.7635, 0.7655-60, 0.7665 0.7680, 0.7700, 0.7725
USDCAD: Held 1.2500 in the USD retreat and firmer oil tones and rallying to 1.test 1.2560 again as I type. Oil still very much in focus.
Southend travel north to Morecambe desperately in need of a result. We'll keep hoping despite Saturday's dismal show.
Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good week.
Interbank rates: 08.18 BST