Variable sentiment still as another week gets underway

Monday 16 December 2019

A busy week too for the Pound with a plethora of data, starting this morning with softer PMI flash readings and then the BOE on Thursday. Jury still out on GBP pairs and we've seen another slide this morning even before the weaker data.

The US-China "have they agreed? will they agree?" trade talks continue with China being a lot more coy than the US (no surprises there) and risk sentiment remains fickle and variable.

GBPUSD failed above 1.3400 again with sellers ever poised as the post-Election reality check continues. Lows so far of 1.3324 but we should expect good two-way business still helped again today by some decent size option expiries.EURGBP is rallying again as GBPUSD falls and posting 0.8353 highs (GBPEUR down to 1.1972) so far.GBPJPY has fallen back even further to post lows of 145.62 as USDJPY/risk remains a little offered.

I continue to have concerns for the UK, both economically and politically, and I stay poised to sell GBP rallies while respecting the current dip demand still. I repeat that this is the end of nothing but the start of fresh unknowns.

EURUSD has also fallen since Friday morning to post 1.1127 helped down from 1.1150 this morning by some softer PMI data. More expiry interest in play today to help contain the range. USDJPY has been tightly bound between 109.25-50 amid the risk and USD uncertainty. USDCHF has also traded tightly as EURUSD falls but so too does EURCHF.

AUDUSD has found support at 0.6865 but equally can't get back over 0.6900 so far while USDCAD has retreated yet again from 1.3200 but holding at 1.3130.

Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always. Markets will get more scrappy as Xmas rapidly approaches

A better display from the Shrimpers on Saturday to earn a point but probably should have had all three if confidence had been higher.Hey ho, we live in hope still.

Have a good day/week out there one and all.

Interbank rates: 09.40 GMT

GBPUSD   1.3330

EURUSD   1.1128

EURGBP   0.8349

GBPEUR   1.1975

GBPAUD   1.9375

GBPCAD   1.7506

GBPJPY   145.81

GBPZAR   19.2995

GBPHKD   10.3347

USDJPY   109.43

USDZAR   14.4467

EURJPY   121.78

EURCHF   1.0949

EURHKD   8.6211

AUDUSD   0.6878

USDCAD   1.3140

USDCHF   0.9838