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Writer's pictureMike Paterson

Markets winding down for Xmas

Monday 23 December 2019

Some notable retreats in the Pound and Euro pairs on Friday but since then it's been a little quiet again as markets and traders wind down for Xmas including me.Talking of which I will post my update tomorrow (24th) but will then be off for the remainder of the week.


Over the weekend we had some more US-China trade talk hot air but risk sentiment remains suitably unimpressed.


GBPUSD looked soggy again on Friday as the post-election reality check continues and we fell back through 1.3000 late in the day to test the next support below 1.2980 but have since bounced again to test 1.3030-35 resistance.

EURGBP remains capped by those offers sellers at 0.8500 but we've held 0.8480-85 with decent support prevailing and should continue to provide a decent base with the usual month-end Bundesbank demand lurking too amid the thin Xmas liquidity.GBPJPY has held 142.00 again but sellers remain poised above into 143.00.


I stay poised to sell GBP rallies while respecting some current dip demand still and we should continue to see  good two-way business.


EURUSD remains on the back foot after holding below 1.1100 but support at 1.1060-80 with EUR 1.55bln in option expiries rolling off there today.USDJPY is tightly bound 109.25-55 still amid the variable risk and USD sentiment. USDCHF is holding around 0.9800 as EURUSD remains near its lows but EURCHF still finding a few sellers but the SNB will remain ever vigilant.


AUDUSD support at 0.6880 held the dip and we have some more building now at 0.6900 after failing above 0.6920 demand while USDCAD remains tightly bound between 1.3120-80 amid variable oil price and USD sentiment.


Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always. Markets will get more scrappy as Xmas and New Year prevail.


Don't forget that I offer 1-2-1 mentoring if there's areas of trading these tight ranges, or how to make best use of the order boards and expiries, that you might need some further help with. I shall happily discuss opportunities to hook up for a chat if you wish to take advantage of the festive break.


Saturday saw a 13 hour round trip for me to Bolton where despite a very pleasant lunch (thanks for the invite Gary!) we had to witness another sad submission from the Shrimpers to lose 3-2 after being 1-0 up early on in a game vital to our staying-up hopes. Another key game on Boxing Day and failure in that to secure a win would surely sign our death warrant.


Talking of which Saturday also brought us the sad news that World Cup winning hero, and all round class act, Martin Peters left us after a 3 year battle with Alzheimers. RIP Martin and thank-you.


Have a good day/week out there one and all.


Interbank rates: 08.32 GMT

GBPUSD   1.3023

EURUSD   1.1087

EURGBP   0.8511

GBPEUR   1.1748

GBPAUD   1.8844

GBPCAD   1.7124

GBPJPY   142.46

GBPZAR   18.5255

GBPHKD   10.0983

USDJPY   109.36

USDZAR   14.2381

EURJPY   121.23

EURCHF   1.0871

EURHKD   8.5957

AUDUSD   0.6912

USDCAD   1.3145

USDCHF   0.9807


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