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  • Writer's pictureMike Paterson

UK Supreme Court fall-out still in focus

Wednesday 25 September 2019

Further to my Supreme Court special update yesterday we've duly seen limited GBP reaction as the jury remains well and truly out with so many unknowns in the mix. I always advise you to ignore the noise and trade the flow so I hope you took heed of yesterday's repeated counsel. Some good two-way pips to be had across the board with limited brain power required.

Global risk sentiment remains wobbly with Trump facing impeachment proceedings to add into the uncertain mix.

GBPUSD held around 1.2500 again where sellers, including me, were poised and we've been back down to test the decent support around 1.2430 I warned about yesterday.EURGBP held 0.8800 (1.1365) on the GBP rally and remains range bound with the core pairs both consolidating and with month-end demand once again approaching to provide expected dip-demand as ever. GBPJPY has also been in two-way mode capped around 134.50 again but finding support into 133.30 this morning.

I will continue to rally-sell GBP as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout but happy to buy back in the dips as always.Rinse and repeat.Still no reason to change my view any time soon as the current madness plays out. UK Supreme Court fallout has more to unfold in the coming days. All eyes on Parliament resuming today at 10.30 GMT

EURUSD rallied on some general USD repo-led supply but held 1.1020-30 again. EUR 5.3bln of option expiries at 1.1000 tomorrow of which 4.8bln are puts very much in the mix and will help to contain the range. USDJPY broke the 107.30 support and tested the next layer at 107.00 having failed to rally above 107.50. I duly took profit on shorts as per my tweet where I also highlighted large option interest between 107-108 tomorrow and which will contain range too. USDCHF has broken down through 0.9880 and 0.9860 but finding support around 0.9850 as I type.

AUDUSD had a look above 0.6800 on the back of a more upbeat RBA Governor Lowe speech. Strange move really given he didn't rule out rate cuts still and sellers including me duly resold around 0.6800 as per my tweet.Not much rocket science needed on that one.USDCAD still has good two-way pips to be had in  1.3220-1.3320 range amid the variable oil/USD/risk sentiment.

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 08.40 BST

GBPUSD   1.2438

EURGBP   0.8839

EURUSD   1.0995

GBPEUR   1.1312

GBPAUD   1.8351

GBPCAD   1.6498

GBPJPY   133.48

USDJPY   107.31

EURJPY   118.22

EURCHF   1.0883

AUDUSD   0.6776

USDCAD   1.3267

USDCHF   0.9903

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