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  • Writer's pictureMike Paterson

Pound has a reality check

Thursday 12 November 2020

Equity markets and oil price are still underpinned but have turned lower from their highs this week and giving risk-off sentiment trades a boost too with safe haven currencies generally in demand again. Some good two-way FX business to be had still overall though.

GBPUSD failed yesterday at 1.3314 in a crazy Brexit-led algo spike and has now been down to 1.3160 helped by EURGBP holding the 0.8860 line I've been banging on about here and on Twitter. EURGBP has had another roller coaster ride after holding 0.8860 a couple of times and now testing/breaking through 0.8950. I remain a dip buyer overall.GBPJPY duly found good supply above 140.00 and now fallen on the softer risk/GBP double whammy to post 138.65.

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 rally-selling in GBPUSD is still bringing some reward but entry level key as always. Definitely expecting dip demand still as I've said for a while now amid the current USD supply.Brexit remains in the room and the negative impact of COVID on the UK economy still in the mix.

USDJPY failed above 105.60 but equally has held 105.20 as range remains tight amid variable rsk/USD tones. EURJPY now finding support at 123.70 amid some general EUR demand and testing 124.30 again as I type. EURUSD finding a spring in its step after holding 1.1750 yesterday and now back up through 1.1800 as I type amid some general EUR demand again. USDCHF failed into 0.9200 as EURUSD found a base and with EURCHF steady albeit capped with the SNB still ever watchful though.

AUDUSD has failed into 0.7300 this time before finding support at 0.7250 while USDCAD has failed above 1.3100 but has since found support around 1.3060 in current retreat amid the variable risk/USD/oil tones.

Markets are ever-fickle so don't forget to reach out if there's areas 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:  08.35 GMT

GBPUSD   1.3193

EURUSD   1.1790

EURGBP   0.8937

GBPEUR   1.1187

GBPAUD   1.8167

GBPCAD   1.7261

GBPJPY   138.95

GBPZAR   20.5687

GBPHKD   10.2285

USDJPY   105.34

USDZAR   15.5990

EURJPY   124.17

EURCHF   1.0796

EURHKD   9.1433

AUDUSD   0.7258

USDCAD   1.3087

USDCHF   0.9160

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