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USD demand notable again as risk-on trades return

Thursday 12 July 2018


Equity markets performing better and reports of US/China renewing talks on trade issues both helping to bring some relief and the US$ is the main beneficiary.

GBPUSD has held the 1.3180 support area again helped by some GBPJPY demand as safe-haven Yen demand fades again for the moment.Immediate support/buying interest still there then 1.3150-60.Sellers poised around 1.3230, 1.3350 then 1.3280-00 still. Keep selling the rallies and buy back in the dips with the Brexit and UK government turmoil never far from the headlines.

Today sees the publication of the UK government's latest Brexit plans which may bring some volatility. Let's see what the EU makes of it.EURGBP remains tightly bound with buyers still lining up between 0.8820-30, 0.8800 and 0.8785.Sellers still into 0.8860, 0.8880 then 0.8900

EURUSD has fallen to look at at 1.1660 but also has some demand on EURJPY buying interest for the moment. Buyers around 1.1650 then larger into 1.620 and 1.1600. Sellers initially around 1.1700 then 1.1720 and 1.1750.

USDJPY finally broke up through the 111.50 large barrier option contract interest amnd has continued up to 112.42 on the USD demand/Yen selling combo.Buyers now around 112.00 then 111.80 and 111.50. Sellers now around 112.50 then 112.80-00. USDCHF has rallied to post 0.9972 but capped again by sellers poised on EURCHF still around 1.1650-60 as I warned yesterday.

AUDUSD now has bids around 0.7350 then 0.7320 and 0.7300 still where large barrier option interest lurks. Sellers now around 0.7400 then 0.7420 and 0.74500. USDCAD fell to 1.3065 on the BOC raising interest rates but buyers quick to pounce and helped by the USD demand has been back up to 1.3220. Sellers now around 1.3230 then 1.3250 with buyers initially now at 1.3150-60

Fickle and fragile markets prevailing still so get your orders in to take full advantage of these limited moves.

England's wonderful bid to win the World Cup ended last tonight in a disappointing performance but we have lots to be hopeful about moving forward. Bring on the Euros!

Have a good day out there one and all.

Interbank Rate 09.15 BST GBPUSD   1.3216 EURUSD   1.1684 EURGBP   0.8840 GBPEUR   1.1311 USDJPY   112.37 USDCAD   1.3192 USDCHF   0.9965 GBPAUD   1.7898 GBPCAD   1.7435 GBPCHF   1.3171 GBPZAR   17.8314 GBPHKD   10.2464 EURHKD   9.0588

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