Friday 9 October 2020
Yes folks, the likelihood of more monetary stimulus in the US to ward off COVID impact has sent equities and oil higher again and it's risk-on sentiment prevailing once more as we end another week. Still remains fragile overall for me but always have to respect market flow even if it is nonsense.
UK GDP data out earlier was better than expected but still soggy and has received mixed reaction with the initial GBP rally being sold again.
GBPUSD found a base at 1.2890 in yesterday's retreat but has since been back to look at 1.2970 once again this morning with GBPJPY demand notable again before retreating as I type. EURGBP has capped at 0.9125 again but equally finding support at 0.9080 and now back up through 0.9110 as GBPUSD finds a few sellers again and EURUSD remains underpinned amid the various cross flows and better risk tones. GBPJPY remains underpinned on the better risk play and has held 136.80 again to plough back up past 137.30 once again this morning before retreating.
I stay poised to sell GBP rallies as my preferred side and buy back in the dips as ever. Patience continues to be a virtue and entry level key as always. I still see dip demand though with markets and risk sentiment still in a state of uncertainty overall.Brexit remains the very big elephant in the room.
USDJPY remains tightly bound on the better risk/softer USD tones to limit moves as well as large option expiries. EURJPY turning back up to 125.00 from 124.60 as I type on the better risk tones and core pair dip demand but also tightly bound. EURUSD still underpinned around 1.1730 by large option interest and EURJPY demand but rally sellers also remain poised around 1.1800-20.USDCHF failed at 0.9200 and now testing 0.9130 as EURUSD rallies with EURCHF slipping but SNB casting its shadow still.
AUDUSD has held 0.7150 this time round before rallying through 0.7180 this morning on the AUDJPY demand but sellers poised again.USDCAD failed above 1.3250 this time and now falling to 1.3160 amid the firmer risk/oil price/softer USD plays.
Markets are ever-fickle so don't forget to take advantage of contacting me if there's areas of trading these markets or how to make best use of the order boards and expiries, that you might need some further help with.
Tomorrow the under pressure Shrimpers return to the hallowed Hall, minus the fans ofc sadly, and hoping to build on last week's hard earned first point of the season. We'll keep believing.
Happy 80th Birthday John Lennon. RIP anc thank you for the huge legacy.
Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good week-end.
Interbank rates: 08.53 BST