Thursday 20 August 2020
Yesterday I typed " Whether/when we will start to run out of steam is the big question but that's not within our remit to answer so we just to need to focus on what's playing out in front of us still". Well we didn't have too long to find out as some USD demand began to creep in to the European day's trading then found extra impetus witrh the FOMC Minutes less dovish than expected.
So a decent reversal of recent USD Dollar sales and some risk-off sentiment returning but we've seen some small correction so far this morning as European trading gets fully underway as the ever-fickle wheels of Forex keep turning.
GBPUSD failed again around 1.3260 and has slipped steadily down to 1.3065 this morning having triggered some decent stops through 1.3190 yesterday. EURGBP duly found support at 0.9000 and rallies have now tested 0.9060 again this morning amid some general EUR demand.GBPJPY broke down through 139.60 and since capped there before falling further to test 138.60 amid the softer risk tones.
I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever.Patience will continue to be a virtue and entry level key as always. I still expect to continue seeing dip demand though as we continue to range. Brexit trade talks still in focus this week.
USDJPY dip demand was duly found again, this time at 105.20 and since seen a move to look at 106.20 amid the general USD demand but rally tempered by some softer risk JPY demand again. EURJPY capped at 126.00 amid the softer risk and EURUSD retreat to test 125.30 before bouncing amid the latest round of general EUR dip demand this morning.EURUSD broke down through those 1.1920 bids and ran down through 1.1900 post-FOMC but some decent dip demand again, this time into 1.1830.USDCHF held 0.9020-25 yesterday where I noted some decent expiries then 0.9060 as the next platform for a decent rally to look at 0.9160 as EURUSD fell with EURCHF underpinned still with the SNB ever lurking.
AUDUSD failed at 0.7280 and fallen steadily amid the firmer USD/softer risk double whammy to look at 0.7160 so far while USDCAD found support at 1.3130 and rallied well on the better USD tones/steady oil but so far finding sellers around 1.3230 amid the USD pause this morning.
Markets are ever-fickle so don't forget to contact me if there's areas of trading these markets 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.
Interbank rates: 08.03 BST
GBPUSD 1.3066
EURUSD 1.1839
EURGBP 0.9062
GBPEUR 1.1034
GBPAUD 1.8220
GBPCAD 1.7276
GBPJPY 138.58
GBPZAR 22.6201
GBPHKD 10.1308
USDJPY 106.07
USDZAR 17.3043
EURJPY 125.81
EURCHF 1.0827
EURHKD 9.1815
AUDUSD 0.7171
USDCAD 1.3222
USDCHF 0.9142
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