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  • Mike Paterson

US Dollar back in demand

It's very fragile out there still and while risk sentiment remains negative we've seen some US$ demand return.

GBPUSD has been down to 2018 lows of 1.3066 this morning helped by GBPJPY selling and the EURGBP month-end demand I've been highlighting again. Immediate support/buying at 1.3050 and 1.3030 then 1.3000 and 1.2980. Sellers now between 1.3100-20 with larger around 1.3150 then 1.3180 and 1.3200. Pound rally sellers still prevailing as per my recommendation with Brexit and UK government turmoil also never far from the headlines.

EURGBP has rallied further to take out the 0.8820-30 sell interest to post 0.8840 (GBPUSD down to 1.1312) with the usual Bundesbank month-end demand to pay for the UK's EU contributions playing out.Buyers  poised now at 0.8800 then 0.8780 still.Sellers still around 0.8850 then 0.8875-80 and 0.8900

BOE comments yesterday did little to comfort GBP bulls that rate hikes are coming any time soon even though markets had begun to price in an August increase following the last 6-3 vote change from 7-2.

EURUSD has been down to 1.1527 amid the USD demand and EU rift on migration as the latest summit gets underway today.The pair had large option contract interest rolling off yesterday but once the expiry time elapsed (15.00 BST) there was little to hold it up above 1.1600. Buyers now around 1.1520-30 still then 1.1500 and 1.1480-85. Sellers initially around 1.1580 then 1.1600 and 1.1630.

USDJPY fell to look at option-related support at 110.00 then rallied to test the decent sell interest at 110.50 only to run out of puff again and has since retreated helped by some safe-haven Yen demand. Buyers still lurking down around 110.00 and 109.80. Sellers around 110.50 still then 110.80-111.00. USDCHF remains underpinned  with EURCHF contained and EURUSD tumbling still.

The Aussie, NZ and Canadian $ have all found a few sellers again with softer commodity prices and the Aussie $ also suffering from the Chinese wobbles. AUDUSD has buyers around 0.7320 and 0.7300. Sellers now into 0.7375-80 and 0.7400. USDCAD buyers at 1.3300 and then 1.3280 still. Sellers around 1.3350 then 1.3400.

Fickle and fragile markets prevailing again so get your orders in to take full advantage of the  moves.

England's footballers take on Belgium tonight. Will either of them fancy playing Brazil in the next phase? Let's see.

Have a good day out there one and all.

Interbank Rate 09.35 BST GBPUSD   1.3075 EURUSD   1.1556 EURGBP   0.8832 GBPEUR   1.1322 USDJPY   110.30 USDCAD   1.3341 USDCHF   0.9978 GBPAUD   1.7827 GBPCAD   1.7453 GBPCHF   1.3054 GBPZAR   18.1298 GBPHKD   10.1370 EURHKD   8.9542


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