Monday 31 May 2021
Some fun and games on Friday amid US PCE data and moving bond yields with decent moves and two-way pips to be had if you didn't get greedy. At the end of it all though we're still ranging as we start another week and almost a new month (where did May disappear to?) with the UK and US on holiday today. Week-end headlines gave the Yuan a stir
There is a 4pm London fix but month-end flows are generally considered to have been done but we might yet see some more US corporate USD demand as I tweeted about on Friday. Either way liquidity will be thin so be careful if you are trading. FYI I'm not at my desk once I send this out.
Jury on the Greenback still out so ignore the noise and, as always in these fickle times, be careful with your trading. Pick your preferred entry/exit levels and don't be greedy or over-analyze. Patience and discipline are key too of course.
GBPUSD: A good hold of 1.4140-50 on Friday and pips banked as per my tweet before I headed out. Failure to hold above 1.4200 was a good signal for some re-sells.EURGBP: Once again 0.8580-85 holding the retreats but sellers poised at 0.8620 so good two-way pips still whatever your bias. GBPJPY: Still a prime mover but failing above 156.00 with core pairs both capping. Dip demand still expected though while risk sentiment remains ok.
I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats.
EURUSD: A good hold of 1.2130-35 on Friday and some pips banked per my tweet before I went out. USDJPY: Pips banked in the latest retreat to 109.60 after capping at 110.20. EURJPY: 133.60-75 now forming a decent base amid the core pair dip demand and general JPY supply but sellers lurking around 134.00 again. USDCHF: Holding 0.8980 on the latest retreat as EURUSD caps again and with SNB ever vigilant/helpful but equally sellers now at 0.9030. EURCHF: Capped into 1.100 now but some general EUR dip demand and SNB shadow keeping it underpinned now at 109.50.
AUDUSD: Underpinned at 0.7680 sgain but sellers lurking at 0.7750-65 still. USDCAD: Still holding 1.2060 but unable to get back above 1.2100 with rallies being tempered by CADJPY demand/ firmer oil prices.
Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good bank holiday Monday everyone.
Interbank rates: 08.45 BST
GBPUSD 1.4178
EURUSD 1.2189
EURGBP 0.8597
GBPEUR 1.1629
GBPAUD 1.8332
GBPCAD 1.7112
GBPJPY 155.55
GBPZAR 19.4570
GBPHKD 10.9860
USDJPY 109.74
USDZAR 13.7354
EURJPY 133.76
EURCHF 1.0976
EURHKD 9.4462
AUDUSD 0.7732
USDCAD 1.2070
USDCHF 0.9004
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