Euro in focus still as markets wait on ECB

Thursday 25 July 2019

Yesterday saw Boris Johnson set out his agenda as PM and put a much re-shuffled Leave-based Cabinet in place to effect Brexit on/by 31 October with or without a deal. We've seen Pound rallies sold again as the jury remains out on the bigger picture.

Elsewhere the Euro has traded tightly ahead of today's ECB meeting and the expected dovish tones. Soggy data yesterday only adding fuel to the fire as I mentioned but Draghi will remain cautious as CB's continue to be caught between a large rock and a very hard place.

GBPUSD found demand at 1.2430 as expected but similarly found sellers around 1.2520. Some support from EURGBP selling still but equally finding pressure from GBPJPY and GBPCHF rally-selling again. EURGBP has slid to 0.8918 as the Euro continues its dovish tones but dip demand remains on both.GBPJPY sellers remain poised as ever amid the fragile risk prevailing still overall but holding 134.50 now as USDJPY finds demand around 108.00 still.

I remain GBP bearish overall and will continue to rally-sell as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout. Johnson may talk an upbeat book but words are cheap.

EURUSD is clinging to the good support at 1.1125-30 but similarly found sellers between1.1150-60 as I warned yesterday. We now need to see how much of a dovish ECB has now been factored in.USDJPY had a dip below 108.00 at option expiry time yesterday with that large 108.00 interest very much in play but rally sellers were poised again between 108.20-30.USDCHF has also found rally sellers helped by the on-going EURCHF supply with the SNB seemingly keeping their powder dry for the moment as we wait on the ECB.

AUDUSD has posted fresh recent lows of 0.6964 after a dovish speech from RBA governor Lowe while USDCAD remains tightly bound amid the USD uncertainty and CADJPY and oil plays.

Fickle Forex markets ever prevailing so be ready with your orders as always.

Have a good day out there one and all.

Interbank Rate 07.10 BST

GBPUSD   1.2477

EURUSD   1.1135

EURGBP   0.8924

GBPEUR   1.1204

GBPAUD   1.7909

GBPCAD   1.6384

GBPJPY   134.88

GBPZAR   17.3322

GBPHKD   9.6734

USDJPY   108.11

USDZAR   13.8774

EURJPY   120.38

EURCHF   1.0972

EURHKD   8.6339

AUDUSD   0.6967

USDCAD   1.3131

USDCHF   0.9854