Wednesday 21 December 2021
Ever-fickle markets and we're still seeing some variable risk appetitite with equity/commodity markets and yields underpinned albeit off their highs and falling back a little as I type. Some USD demand notable, reportedly for year-end but Omicron concerns/fallout lurking though and markets second-guessing Central Banks still.
Last week before Xmas and we can expect some reduced liquidity/ increased volatility.Patience will invariably be a virtue but don't confuse patience with being stubborn. Let the algos do their work and have orders in or fingers poised to take advantage of headline-led moves.
GBPUSD: Support line around 1.3200, then 1.3220 and now 1.3240 but capping above 1.3280 with some good-size option interest in play tody. GBPUSD rally sellers, including me, ever poised while keeping one eye at least on the EURGBP and GBPJPY cross flows.EURGBP: A good hold of 0.8480-85 (1.1780 cap) again so far in the retreat from capping at 0.8525 (1.1730 support) as we continue to range still overall.GBPJPY: 150.80-00 now the a decent support line amid the firmer USDJPY and generally firmer risk tones but sellers remain poised on this and core pairs.
I remain a GBP rally seller across the pairs overall as my preferred trading side but being patient as ever. These markets are ever-fickle so good/tight position management essential.
EURUSD: 1.1260 now providing support but failing into 1.1300 amid the cross play and USD flows. USDJPY: Climbing steadily higher and now testing 114.30 again amid the general USD demand and JPY supply double whammy. EURJPY: 128.50 support now but mixed tones still with risk-on EUR and JPY supply. USDCHF: Back up through the pivotal 0.9220-30 again amid the general USD demand and renewed CHF supply as EURCHF also rallies with the SNB ever vigilant. EURCHF: 1.0380 duly held and now support coming in at 1.0400 again with the SNB shadow always lurking but tempered by EUR supply elsewhere
AUDUSD: 0.7120 support now helped by some risk-on AUDJPY demand but capping into 0.7160 so far. USDCAD: Solid base at 1.2900 still after capping at 1.2945, where I noted offers yesterday, amid rising oil prices and risk-on CADJPY demand.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.25 GMT
GBPUSD 1.3270
EURUSD 1.1270
EURGBP 0.8492
GBPEUR 1.1774
GBPJPY 151.64
GBPCAD 1.7132
GBPCHF 1.2274
GBPZAR 21.0756
GBPHKD 10.3373
USDJPY 114.25
EURJPY 128.79
EURCHF 1.0424
EURHKD 8.7797
AUDUSD 0.7139
USDCAD 1.2911
USDCHF 0.9247
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