US Dollar supply notable again

Tuesday 25 February 2020

With all the usual factors in play and mostly a Coronavirus-led risk-off scenario we've seen some decent moves in the Greenback (all relative these days) with USDJPY falling back in rapid fashion to test the 110.30 support area  amid a US equity tumble before bouncing and USDCHF failing to hold above 0.9800 again. European trading dominated by some further USD supply so far as US 10-year bond yields retreat too.

GBPUSD held into 1.2880 and has since rallied quite steadily to post 1.2982 this morning amid the USD supply.

EURGBP duly found the support I highlighted to post 0.8406 (GBPEUR down to 1.1897) but has since retreated again and helped to underpin GBPUSD. Month-end EURGBP demand in play this week with February being a short month.

GBPJPY failed around 144.00 then fell in rapid time to post 142.65 before bouncing to 143.64 as core pairs found the expected dip demand.

I stay poised to sell GBP rallies and buy back in the dips as ever.Still ranging overall.

USDJPY duly fell to test the 110.30 support area I highlighted yesterday and did indeed find further downward monmentum from there a step too far.EURJPY lower too as JPY demand generally prevails despite EURUSD finding some demand but with sellers also ever-ready.EURUSD has rallied to post 1.0868 but with rally sellers still poised . Decent size option expiries today to provide some congestion/impact. USDCHF has found support into 0.9760 again with EURCHF still holding around 1.0600 and the SNB casting a shadow still.Forgive me if you've heard that before a few times here but you can't blame me for not highlighting it!

AUDUSD has found decent support at 0.6580 again but remains range-bound and providing good two-way pips with sellers poised at 0.6625.USDCAD has bucked the softer USD trend due to softer oil prices and risk-off CADJPY selling again and currently testing 1.3300 again afater holding around 1.3260.

Fickle Forex markets ever prevailing so be ready to jump on moves with your entry/exit levels and orders as always.

Have a good day out there one and all.

Interbank rates: 08.45 GMT

GBPUSD   1.2954

EURUSD   1.0863

EURGBP   0.8384

GBPEUR   1.1926

GBPAUD   1.9609

GBPCAD   1.7220

GBPJPY   143.31

GBPZAR   19.7018

GBPHKD   10.0432

USDJPY   110.55

USDZAR   15.1829

EURJPY   120.10

EURCHF   1.0621

EURHKD   8.4213

AUDUSD   0.6608

USDCAD   1.3284

USDCHF   0.9778