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Writer's pictureMike Paterson

Jury still out after some firmer risk tones

Tuesday 15 June 2021

Yesterday I reported that "some better risk tones greet the new week but we're not seeing too much by way of JPY and CHF supply...". Well we soon did, and that set the tone for the day underpinning core FX pairs too. Some retracement as I type with USD finding a few buyers too.


UK PM Johnson duly announced a delay of lockdown easing until 19 July which is an absolute joke. The anomalies remain, and some. Crazy days in the UK. The latest policy decision from the US Federal Reserve tomorrow still casting a shadow over markets in the meantime. Copper prices have tumbled to lowest levels in 7 weeks amid fears of measures by China to cap commodity prices given its huge import needs.


GBPUSD: 1.4070-80 holding again yesterday and my buy-backs proved prudent with a rally helped by support from GBPJPY demand but still failing to hold above 1.4120 and re-sells duly placed. I remain a rally seller but respecting the dip demand/range trading.EURGBP: Underpinned still at 0.8580 and now looking above 0.8600 again helping to cap GBPUSD. Range trading still and large options in play today.GBPJPY: A good hold of 154.40 in yesterdy's early retreat and finally enjoyed the risk-on rally to test 155.50 where we've now capped.


I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats.


EURUSD: Now capping again at 1.2140-50 after forming a base at 1.2100 amid some good EUR cross demand.USDJPY: 109.80 finally broke amid the happy-clappy JPY supply and some decent size Puts rolling off today between 110.00-10 as I warned yesterday. EURJPY: 133.20 now providing a decent base and testing 133.60 amid the general EUR demand and firmer risk plays. USDCHF: Back down through 0.8980 after capping at 0.9000 and with EURCHF also retreating from 1.0913 as some CHF demand returns after yesterday's solid sell but with the SNB ever vigilant. EURCHF: Holding 1.0880 atm in latest retreat with SNB shadow ever present


AUDUSD: Yet more options interest today with 0.7680 holding again but rallies tempered by falling copper/commodity prices. USDCAD: Testing 1.2160 again after forming a decent base at 1.2120 helped by firmer USD tones and aome CADJPY supply now oil prices retreat.


Let's continue to be careful out there in all things. Staying safe must be our main priority still.


Interbank rates: 08.50 BST

GBPUSD 1.4114

EURUSD 1.2143

EURGBP 0.8603

GBPEUR 1.1622

GBPCAD 1.7139

GBPJPY 155.33

GBPZAR 155.17

GBPHKD 10.9317

USDJPY 110.04

USDZAR 13.7440

EURJPY 133.65

EURCHF 1.0889

EURHKD 9.3972

AUDUSD 0.7703

USDCAD 1.2141

USDCHF 0.8967



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