Wednesday 10 October 2018
It's been another decent 24 hours for the Pound amid more positive Brexit noises, albeit without the detail still. Trump has voiced his concern about US rate hikes again and helped send the Greenback generally lower too.
The net result has seen GBPUSD rallying strongly to post highs of 1.3185 this morning after testing the 1.13030 support area yet again yesterday where I was able to trim back short positions again. EURGBP has fallen through support at 0.8750 to post lows of 0.8724 (GBPEUR up to 1.1464) and that momentum has helped underpin the Pound across the board. Decent sell interest still poised between 1.3180-1.3200 then larger into 1.3230 and 1.3250 with 1.3280-00 still a very good line in the sand. Immediate demand now around 1.3150 area then more at 1.3130 and larger at 1.3100 then 1.3080 and 1.3060. I remain a GBP rally seller up here for the moment but with a little caution with both the UK and EU seemingly keen to get something of note sorted by the 18th Oct summit.
EURGBP has bids/support into 0.8700 and 0.8680 but still remains undermined by the GBP demand/Italy-led EUR supply double whammy. Sellers poised now around 0.8750 again then 0.8780, 0.8800 and 0.8830. Plenty of UK data,inc GDP,out today at 08.30 GMT with BOE's Haldane up to the mic too so caution understandably advised on GBP trading for the moment.
EURUSD has failed above 1.1500 yet again this morning as a little USD demand returns generally in early European trading.Immediate bids/support now at 1.1475-80 then still between 1.1450-60, larger at 1.1430 and 1.1400 with sellers poised into 1.1530 still then 1.1560 with larger between 1.1580-1.1600 still. Large-ish option contracts rolling off around 1.1500 today and tomorrow may help contain range there today.
USDJPY is still finding rally-sellers on the risk-off Yen demand/USD supply tones but is ranging still between 112.80-113.30 with large options again today at 113.00 proving a bit of a magnet. Bids/demand still around 112.75-80 and 112.50 with sell interest between 113.20-30 then 113.50. I remain a rally seller. Deja vu moment as USDCHF also still trades tightly again as the jury remains out on the Greenback and the finger still pointing to some assistance from the SNB. EURCHF demand still around 1.1380 then 1.1360 and 1.1320.Sellers at 1.1430,1.1450 then larger between 1.1480-1.1500. USDCHF bids still at 0.9900, 0.9880, 0.9860 and 0.9830 with sell interest around 0.9930, 0.9960 then 0.9980-00. I remain a dip buyer on both.
AUDUSD has felt a little love again on the USD supply to post 0.7130 but still remains undermined by concerns over the US-China trade spat and Aussie $ sellers remain poised. Immediate demand now at 0.7100 and 0.7080, with larger at 0.7050 and 0.7030.Sellers poised around 0.7130 then 0.7150 still. USDCAD is still making its mind up on the NAFTA/USCMA trade deal uncertainties and still ranging for the moment.Sell interest at 1.2980 then 1.3000 again,1.3030 and 1.3050-60 with buyers still around 1.2920 and 1.2900.
Fickle Forex markets ever prevailing so get your orders in to take full advantage of these moves.
Have a good day out there one and all.
Twitter: @MSPFX and @MikePatersonFX
Interbank Rate 07.44 BST
GBPUSD 1.3170
EURUSD 1.1501
EURGBP 0.8733
GBPEUR 1.1450
USDJPY 112.98
USDCAD 1.2932
USDCHF 0.9913
GBPAUD 1.8495
GBPCAD 1.7024
GBPCHF 1.3050
GBPZAR 19.1773
GBPHKD 10.2107
EURHKD 8.9176
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