Wobbly Pound and risk sentiment still prevailing
Wednesday 18 December 2019
Post-election reality check still playing out for Pound pairs, as is Trump's impeachment on the Greenback with a vote due late this evening and now there's reports of Russia seizing five Japanese fishing boats. End result is wobbly risk sentiment that has helped capped USD rallies and produced some further JPY and CHF demand.
GBPUSD has fallen through decent demand at 1.3130 and 1.3080-00 to post 1.3072 lows, just above the 1.3051 election day lows.EURGBP posted 0.8519 highs as GBPUSD fell but capped by sell interest at 0.8520 and EURUSD also playing catch-up and retreating further. Don't forget the usual month-end Euro demand looming too amid some thin Xmas liquidity.GBPJPY has fallen back further helped by the softer GBP/firmer JPY risk play double-whammy to post lows of 143.07.
I stay poised to sell GBP rallies while respecting some natural dip demand still given the rapid rise to test 1.3500 and we should continue to see some two-way business. Mixed UK inflation data out just now.
EURUSD remains contained 1.1120-60 with a few option expiries in play again today while USDJPY has also been tightly bound again around 109.50. USDCHF has retreated to test 0.9800 as has EURCHF which remains on the back foot at 1.0915 but beware the SNB as ever.
AUDUSD remains on the back foot at 0.6847 helped by some AUDJPY supply and some dovish February rate cut expectations while USDCAD remains tightly bound amid variable oil price and USD sentiment with some CADJPY selling helping to underpin too.
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
Don't forget that I offer 1-2-1 mentoring if there's areas of trading these tight ranges, or how to make best use of the order boards and expiries, that you might need some further help with.
Have a good day out there one and all.
Interbank rates: 08.35 GMT