Monday 19 October 2020
Brexit and COVID continue to play out for the Pound but the more positive tones on the former are providing support in Asia and early Europe despite Johnson's huff and puff on Friday as talks continue. Still remains suspect to further wobbles so let's see what pans out this week.
Elsewhere risk sentiment remains variable/fickle amid the global uncertainty on a number of fronts. Trump has been out to say he wants a bigger stimulus packagage deal than Pelosi but that's largely considered to be more electioneering. Chinese Q3 GDP data came in below expectations and NZ PM Arden was returned with an outright majority helping to underpin NZD but not exactly racing higher.
GBPUSD held 1.2880-90 again and since rallied on the Brexit-positive tones to test 1.2980-85 as I type. EURGBP is approaching support at 0.9020 after struggling to get back through 0.9090-00 as the GBP positive tones prevail. I remain a dip buyer overall but respecting current two-way business.GBPJPY found a base at 135.60 again and now testing 137.00 amid the firmer GBP/risk tones.
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 105.10-60 amid the variable risk/USD tones and option contract flows. EURJPY has held 123.00 again but failing at 123.70 with core pairs both soggy overall still. EURUSD also tightly bound still 1.1700-50 amid the cross pair and option flows.
USDCHF found support at 0.9120 again with SNB casting its shadow still as EURUSD capped but sellers still poised above 0.9160 with EURCHF still looking a little soggy for the moment.
AUDUSD has capped above 0.7100 again after holding 0.7065 but underpinned still for the moment on the firmer risk/AUDJPY demand.USDCAD remains tightly bound amid the variable/fickle risk/USD/oil tones but now holding between 1.3160-1.3220.
Markets are ever-fickle so don't forget to contact me if there's areas o that you might need some further help with.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.43 BST
GBPUSD 1.2971
EURUSD 1.1720
EURGBP 0.9035
GBPEUR 1.1064
GBPAUD 1.8276
GBPCAD 1.7096
GBPJPY 136.72
GBPZAR 21.3987
GBPHKD 10.0023
USDJPY 105.41
USDZAR 16.4733
EURJPY 123.58
EURCHF 1.0722
EURHKD 9.0404
AUDUSD 0.7097
USDCAD 1.3179
USDCHF 0.9145
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