Wednesday 18 July 2018
We've seen sellers prevail again amid the on-going shambles over the UK government's handling of Brexit. The latest amendment votes have seen narrow victories for PM May but her position remains undermined, not that anyone is likely to take that poison chalice for the moment.
UK jobs/wages data yesterday came in a little better than expected but the rally was soon rightly sold, regardless of the rising odds for a BOE RATE hike next month.The next set of stats for the BOE to mull over comes this morning with the latest inflation data at 09.30 BST. With inflation currently falling/capping there is some respite for minimal wage growth but household debt is still too high again and that must remain a concern.
GBPUSD held the 1.3280-3300 resistance area I highlighted again after the data release and helped by general USD demand made it's biggest one day losses for some time to test decent support lines at 1.3080.Immediate support/buying interest still around there then between 1.3050-60, 1.3030 and 1.3000 where a large barrier option contract still sits waiting to provide support.Sellers now poised around 1.3120 then 1.3150 and larger between 1.3180-3200 and 1.3230.Keep selling the rallies with Brexit and UK government turmoil never far from the headlines but respect the demand expected into 1.3000 and 1.2980.
EURGBP remains underpinned and has tested the 0.8900-20 resistance area (GBPEUR support 1.1200-20.Sellers still up there then 0.8950. Buyers nearby now at 0.8875-80 then into 0.8850 with the decent demand around 0.8820 still. Keep buying the dips but similarly respect the sell interest above 0.8920.
EURUSD has fallen on the US$ buying to test 1.1620 again.Buyers lined up now around 1.1620 still then larger into 1.1600 still and 1.1580. Sellers now poised between 1.1650-60 then 1.1680 and 1.1700-20.
USDJPY remains underpinned and now taken out the large barrier option contract interest at 113.00 to post 113.14.Buyers now around 112.80 then 112.50 and 112.30 Sellers still at 113.20 and 113.50 where another barrier option lays in wait. USDCHF failed to hold above 1.0000 and has fallen back to look at 0.9950 helped again by more sellers on EURCHF above 1.1700.
AUDUSD has also finally broken down through 0.7400 to test the good bids/support around 0.7350. More at 0.7320 and 0.7300 still where large barrier option interest lurks. Immediate buy interest still at 0.7400 and 0.7380. Sellers now around 0.7360-65 then more at 0.7380 and 0.7400. USDCAD has rallied on a strong US$/lower oil price double whammy. Sellers at 1.3260, 1.32080 and 1.33300 with buyers now poised at 1.3220 then 1.3200 and 1.3180
Fickle markets prevailing still so get your orders in to take full advantage of these moves.
Have a good day out there one and all.
Interbank Rate 08.30 BST GBPUSD 1.3088 EURUSD 1.1625 EURGBP 0.8882 GBPEUR 1.1257 USDJPY 113.07 USDCAD 1.3243 USDCHF 1.0031 GBPAUD 1.7806 GBPCAD 1.7330 GBPCHF 1.3127 GBPZAR 17.4049 GBPHKD 10.1471 EURHKD 9.0141