Pound under pressure still

Friday 9 April 2021

The Pound continues to retreat amid a reality check from previously over-bought/over-extended moves higher based on the happy-cappy vaccine optimism. Additional selling pressure coming this week from EURGBP's large rally and softer risk/reportd M&A selling in GBPJPY as per my updates and tweets but now back over 150.00 after holding 149.50 with risk sentiment a little firmer.

EUR demand/correction continues overall with EURAUD buying also helping to push AUDUSD below 0.7600 and EURJPY demand helping to underpin USDJPY too. Jury remains out on USD with Powell offering nothing new in his IMF address and covering all bases still.

GBPUSD: The retreat has continued amid GBPJPY selling and EURGBP demand again and down we've come to now look at the strong 1.3665-70 area as per my earlier tweets. EURGBP: Further gains to post 0.8697 after a break back up and hold of 0.8660. Offers at 0.8700 helping to cap but support at 0.8650-60.GBPJPY: Finding support at 149.50-60 as core pairs find dip demand but sellers remain poised.I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats. Nice when it happens though.

EURUSD: Underpinned now at 1.1880 with larger at 1.1860 after running out of steam at 1.1930. Re-sells duly placed and pips banked. I remain a rally-seller overall and always poised if momentum fades but still respecting dip demand.USDJPY: Some decent options-based support today. I remain bearish overall but always cautious with everchanging risk and USD tones.EURJPY: Large support line at 129.80 broke briefly to post 129.60 but core pair demand and relentless EUR buying prevailing again. 130.30-50 presents a bit of a cap again.USDCHF: Support coming in at 0.9230 now as EURUSD retreats again and EURCHF holds 1.1000 but sellers poised still. SNB ever watchful and ready to help.EURCHF: 1.1000 now the latest line of support helped by the general EUR demand and SNB shadow.

AUDUSD: Failing at 0.7660 again amid some strong EURAUD demand but support at 0.7600 still.Decent option demand should help contain falls today.USDCAD: Held lower level of 1.2550 this time and rallied again on oil price capping but failing to hold above 1.2610 atm with some CADJPY demand returning. Sizeable options in play today.

Southend bring back manager Phil Brown in a last throw of the dice with six games left. Too little too late probably but I'll keep believing.....

Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good week-end everyone.

Interbank rates: 08.29 BST

GBPUSD 1.3693

EURUSD 1.1890

EURGBP 0.8685

GBPEUR 1.1512

GBPAUD 1.8004

GBPCAD 1.7252

GBPJPY 149.92

GBPZAR 19.9867

GBPHKD 10.6216