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