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  • Writer's pictureMike Paterson

USD demand again in these uncertain times

Thursday 19 November 2020

Ok, you know the drill by now. Markets are ever fickle and we just need to go with the flow.

I could spend an extra hour every day here giving you my (experienced) reasons why things are happening but that serves only a small purpose and by the time I finish this report can be out of date anyhow.

Remember one of my mantras.. Ok. two:

1) Ours is not to reason why, ours is just to sell and buy... ( or buy and sell.. Each to their own take on things)

2) If in doubt, keep the **** out.

So, where are we now ?

GBPUSD duly found a cap at 1.3300 per my report and tweets and re-sells duly placed/buy backs made in the retreat. Really not rocket science. EURGBP broke down through 0.8935-40 but held 0.8915 helped by strong option contract support today between 0.8900-25 and since back to challege 0.8950-60 again. Great two-way pips to be had. GBPJPY found a cap around 138.10 but holding 137.20 after a retreat amid the softer risk/firmer USD tones.

I stay poised to sell GBP rallies as my preferred side and buy back in the dips as ever.Patience continues to be a virtue and rally-selling in GBPUSD is still bringing some reward but entry level key as always. Definitely expecting dip demand still as I've said for a while now amid the current USD supply.Brexit remains very much in the room and the negative impact of COVID on the UK economy before any sort of vaccine-led recovery still in the mix.

USDJPY has held 103.60 and rallied to test 104.00 but tempered by the risk-off JPY demand. EURJPY failed at 123.60 this time but holding 122.80 after the risk-off retreat. EURUSD in retreat again on the firmer USD/softer risk tones and now testing 1.1825 bids as I type.USDCHF testing 0.9130 agin after holding 0.9100 (again) as EURUSD retreats with EURCHF also softer albeit with the SNB still ever watchful.

AUDUSD duly capped above 0.7330 again where there's also big technical resistance and falling back through 0.7280 to now post 0.7270 as I type amid the firmer USD/softer risk tones. Buy-backs duly made in the dip and poised to place re-sells.USDCAD held 1.3030 and has rallied above 1.3110 again on the softer risk tones with CADJPY selling notable.

Markets are ever-fickle so don't forget to contact me if there's areas that you might need some further help with.

Let's continue to be careful out there in all things. Staying safe must be our main priority still.

Interbank rates: 08.12 GMT

GBPUSD 1.3222

EURUSD 1.1842

EURGBP 0.8957

GBPEUR 1.1163

GBPAUD 1.8147

GBPCAD 1.7307

GBPJPY 137.28

GBPZAR 20.5710

GBPHKD 10.2468

USDJPY 103.89

USDZAR 15.5610

EURJPY 123.05

EURCHF 1.0792

EURHKD 9.1785

AUDUSD 0.7282

USDCAD 1.3094

USDCHF 0.9112

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