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  • Writer's pictureMike Paterson

US Dollar demand notable again with FOMC in focus

Tuesday 25 September 2018

An up n down day again across the board yesterday but the net impact is a firmer Greenback this morning amid expectations of 0.25% interest rate hike from the US Fed tomorrow evening.

GBPUSD completed it's latest rally around 1.3160 and since been back down to 1.3094 before fresh demand held further falls.Sellers now poised between 1.3150-60 then 1.3180,1.3200 and 1.3220. Topside line in the sand still between 1.3280-1.3300 with a barrier option in place now at the upper end. Immediate demand now at 1.3100 then 1.3080 and 1.3050 still then more into 1.3020 and larger at 1.3000. I remain a GBP rally seller.

EURGBP held support lines into 0.8930 demand (GBPEUR up to 1.1193) and needed little excuse to rally in a rush to post 0.8980 (GBPEUR down to 1.1355) on hawkish comments from ECB's Draghi before running into the supply I highlighted yesterday. Sellers now poised around 0.8960 then 0.8985 and 0.9000 still then 0.9030 and 0.9050.Buyers lurking into 0.8930 still and 0.8900. The usual month-end buying from the Bundesbank is now in play and should help keep the pair underpinned and I remain a dip buyer.

EURUSD rallied to 1.1816 on those Draghi comments but ran into sell interest yet again and fell back to 1.1750 helped by a warning from  the Dragster on the negative impact of protectionism.We've since posted lows of 1.1725 before heading up only to fail this time into 1.1780. Decent line in the sand now at 1.1720 as I warned yesterday then more at 1.1700, 1.1680 and 1.1660. Sellers poised around 1.1780 then 1.1800, 1.1820-30 and 1.1850.

USDJPY continues to find dip demand helped by some general Yen selling again and helped this morning by some comments from BOJ governor Kuroda. The pair has now rallied to post 112.99 highs this morning.Sell interest at 113.00 still ahead of barrier option defence at 113.50 and 114.00. Bids now at 112.75-80, 112.50, 112.30 and 112.00 still. USDCHF has found some more dip demand of it own with the Franc also finding a few sellers and has been up to 0.9672 helped by EURCHF breaking up through 1.1320. Bids now at 0.9630, 0.9600 and 0.9575-80 0.9530 with sell interest still into 0.9680 and 0.9700. EURCHF has bids now at 1.1320, 1.1300 at 1.1280.

AUDUSD failed above 0.7280 and has now posted fresh recent lows of 0.7236 as the Aussie $ remains on the back foot.Sellers now around 0.7250 then 0.7280 again and 0.7300 still with immediate demand building into 0.7220 and 0.7200 still. USDCAD is making its mind up still but has also found some general USD dip demand to rally and post 1.2974. Sellers still around the pivotal 1.2980 area and 1.3000 then 1.3030 with buyers initially at 1.2950, 1.2920 and 1.2900.

Fickle Forex markets ever prevailing, so get your orders in to take full advantage of these moves.

Have a good day out there one and all.

Interbank Rate 08.55 BST GBPUSD   1.3145 EURUSD   1.1771 EURGBP   0.8953 GBPEUR   1.1167 USDJPY   112.92 USDCAD   1.2967 USDCHF   0.9653 GBPAUD   1.8141 GBPCAD   1.7036 GBPCHF   1.2681 GBPZAR   18.8508 GBPHKD   10.1913 EURHKD   9.1263

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