Trump sends US Dollar lower again
Tuesday 21 August 2018
Trump has once again expressed his disappointment in the US Fed hiking interest rates, just days after he was pumping himself up and gloating over the firmer USD as a sign of increased confidence and economic recovery. No, you really couldn't make it up, but hey since when did any level of consistent rational behaviour become a feature of the POTUS' tenure?
GBPUSD had run into decent resistance between 1.2780-00 but cue Trump's comments published last night and the pair rallied to test the next lines at 1.2830 and 1.2850 where it finally capped.Immediate support/buying interest now around 1.2800 then larger at 1.2780 and 1.2750.Sellers still poised at 1.2850 with larger interest between 1.2880-00. Rallies can still be sold for short term plays but continue to be aware of the ongoing dip demand on the softer USD tones as I've have also been warning of late. FOMC Minutes to be published tomorrow and then Powell's keynote speech at Jackson Hole on Friday take on even greater significance now.
EURGBP rallied to test 0.9000 (GBPEUR down to 1.1107) as EURUSD gains outstripped GBPUSD again. Sellers still poised around 0.9000 then 0.9030. Buying interest building between 0.8950-60 then larger at 0.8930 and 0.8900 still.
EURUSD needed little Trump-based excuse to rally through 1.1480 and test 1.1500 and it wasn't long before yet another barrier option interest was history with highs of 1.1543. Sellers building around 1.1530, then 1.1550 with more in the usual 80-00 congestion area.Buyers now immediately around 1.1500 then more into 1.1480 and 1.1450.
USDJPY fell through the decent line of support around 110.30 and it wasn;t long before stop-loss selling saw it take out bids at 110.00 to test 109.80. Large option expiry interest at 110.00 today and some general USD demand returning after the knee-jerk reaction sees us back at 110.18 as I type.Sellers poised around 110.30 then 110.50 and 110.80-00 still. USDCHF gave up as seemingly the SNB gave up too for the moment against the tide of USD supply and while the previous line in the sand at 0.9900 held up again for a while we've been down to 0.9868.EURCHF also gave up above 1.1400 again and has been down to test 1.1350-60 bids/support.Sellers remain poised on both though as I've been warning but we can continue to expect dip demand still.
AUDUSD has been up to finally take out the decent sell interest at 0.7350 but finding further gains hard to come by. Immediate buying interest at 0.7320,0.7300 and 0.7280 then 0.7250 still. Sell interest now 0.7375-80 and 0.7400. USDCAD has fallen through its own line in the sand at 1.3050 only to run into more demand at 1.3020, with more buyers lining up at 1.3000. Sellers now into 1.3050 then 1.3080-00.
Fickle Summer markets still prevailing so get your orders in to take full advantage of these moves.
Have a good day out there one and all.
Interbank Rate 08.50 BST GBPUSD 1.2830 EURUSD 1.1516 EURGBP 0.8976 GBPEUR 1.1140 USDJPY 110.15 USDCAD 1.3028 USDCHF 0.9868 GBPAUD 1.7446 GBPCAD 1.6717 GBPCHF 1.2665 GBPZAR 18.4975 GBPHKD 9.9475 EURHKD 8.9292