Variable risk sentiment to start the week.

Monday 22 June 2020

All very fragile out there still but we're currently seeing some risk-on sentiment as European trading gets underway with equities/oil rising and Yen weakening.

GBPUSD has been down to 1.2333 since my tweets on Friday saying I was taking more profit at 1.2380 and 1.2350 and since resold up here at 1.2420 as the GBPJPY-led rally puts a bid under GBP generally with EURGBP also retreating from 0.9077. EURGBP has moved higher again to test 0.9080 (GBPEUR down to 1.1075). Large option expiries at 0.9060 definitely in play today to help put a cap on the rally. GBPJPY has based around those 131.75 bids and back up to test 133.00 amid the better risk this morning putting a bid under core pairs.

I stay poised to sell GBP rallies overall and buy back in the dips as ever but patience continues to be a virtue and entry level key as always. I still expect to see some dip demand though given the recent rallies.

USDJPY has been down to 106.75 but capped into 107.20. Rinse n repeat still. EURJPY is finding support/demand into 119.30 on the retreat from 120.20 but failing into 120.00 on the bounce as I type. EURUSD is finding expected support into 1.1160 helped by the better risk but rallies failing into 1.1220 amid cross-pair flows still. Large option expiries in play at 1.1200-05 today. USDCHF is still holding 0.9480 but failing above 0.9520 again ( yes deja vu time folks!) as EURCHF retreats once more but with the SNB seemingly drawing another line under it.

AUDUSD still looks uncerpiined in the dips and enjoying some AUDJPY risk-on demand to test 0.6880-85 from 0.6815. USDCAD failed above 1.3620 again and another retreat since, helped by firmer oil/CADJPY demand to test 1.3560.

We know there's lots going on right now, and the foreseeable future, so don't forget to tcontact me if there's areas of trading these volatile markets or how to make best use of the order boards and expiries, 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. Make sure you get some rest over the week-end.

Twitter: @MSPFX and @MikePatersonFX

Interbank rates:  08.45 BST

GBPUSD   1.2418

EURUSD   1.1212

EURGBP   0.9024

GBPEUR   1.1079

GBPAUD   1.8044

GBPCAD   1.6853

GBPJPY   132.89

GBPZAR   21.6146

GBPHKD   9.6293

USDJPY   106.95

USDZAR   17.3912

EURJPY   119.88

EURCHF   1.0652

EURHKD   8.6914

AUDUSD   0.6881

USDCAD   1.3567

USDCHF   0.9502