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  • Writer's pictureMike Paterson

Pound feels a little Brexit love again

Friday 5 October 2018

Some more conciliatory/positive reports on Brexit have seen a few GBP buyers return while the US$ pauses for breath ahead of US key non-farm payroll and wages data today at 12.30 GMT.

GBPUSD continued its rally from this time yesterday to post 1.3042 and again this morning after a dip back into 1.3000 which has now become a decent line in the sand having held on a few occasions helped by EURGBP falling to 3-month lows. Sellers now around 1.3060 then larger still between 1.3080-1.3100 and 1.3130 then 1.3150. Immediate demand now around 1.3020 then larger between 1.2990-1.3000, 1.2960 1.2930 and 1.2900. I remain a GBP rally seller while respecting the current demand and US data to come.

EURGBP has broken down through decent support around 0.8850 and then 0.8830 to post those 3-month lows of 0.8814 (GBPEUR up to 1.1346). Bids now around 0.8800,0.8785 and 0.8750.Sellers poised between 0.8850-60 then 0.8880 before the good sell interest between 0.8900-10. Currently happy to sit and watch this pair from the sidelines.

EURUSD has broken back up through 1.1500 and also looks underpinned amid some general US$ supply but sellers remained poised too. Large option contracts expiring today at 1.1500 and should help contain range, US data notwithstanding. Immediate bids/support now at 1.1480 then between 1.1450-60 still and 1.1430 and 1.1400 with sellers still poised into 1.1530 then 1.1550-60, 1.1580 and 1.1600

USDJPY has failed yet again above 114.00 as US$ sellers and Yen buyers return. Bids still building around 113.50 with large option expiries there today, with more bids between 113.20-30 then 113.00. Sell interest around 114.00, 114.20, 114.50 then 114.70-75 and the key 115.00 area. i remain a rally seller. USDCHF has held on to a lot of recent gains with the finger pointing to some assistance from the SNB in recent times bouyed again by the return of some EURCHF demand. Support now around 1.1400, 1.1380 then 1.1360 and 1.1320.Sellers at 1.1450 then larger between 1.1480-1.1500. USDCHF bids at 0.9900, 0.9880, 0.9860 and 0.9830 with sell interest around 0.9960 then 0.9980-00. I remain a dip buyer on both.

AUDUSD remains on the back foot undermined by concerns over the US-China trade spat to post fresh lows of 0.7054 not seen since early September. Sellers now around 0.7085, larger at 0.7100 then 0.7120 and 0.7150-60 with immediate demand at 0.7050, 0.7030 and 0.7000. USDCAD has rallied further to 1.2941 helped by softer oil prices and remains underpinned for the moment.Sell interest at 1.2950 and 1.2980-00 with buyers now around 1.2900, then 1.2880 and 1.2860.

Fickle Forex markets ever prevailing, so get your orders in to take full advantage of these moves.

The mighty Shrimpers of Southend United return home to the hallowed Hall after two excellent away wins and will be hoping to keep the run going. Bring it on !

Have a great week-end out there one and all.

Interbank Rate 08.30 BST GBPUSD   1.3045 EURUSD   1.1505 EURGBP   0.8820 GBPEUR   1.1337 USDJPY   113.84 USDCAD   1.2928 USDCHF   0.9935 GBPAUD   1.8485 GBPCAD   1.6865 GBPCHF   1.2960 GBPZAR   19.2880 GBPHKD   10.1138 EURHKD   8.9210

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