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  • Writer's pictureMike Paterson

Powell and Fed disappoint the hawks once again

Updated: May 4, 2021

Thursday 29 April 2021

Market hawks were duly disappointed by the FOMC and Powell once again and some EOM USD supply (as I warned yesterday) combined to send the Greenback generally lower. No great surprises in either but a nice little shake-up at least, albeit still ranging overall generally.

Better risk sentiment also prevailing which is helping to underpin USDJPY, and USDCHF has held 0.9080 after its own retreat with EURUSD rallying and EURCHF remaining steady amid the CHF supply and SNB hand on the tiller. More EOM USD selling expected too to keep in mind still.

As always in these fickle times be careful with your trading. Pick your preferred entry/exit levels and don't be greedy or over-analyze. Patience a virtue too of course.

GBPUSD: Finally broke up through 1.3925-30 offers/resistance to test 1.3975-80 amid the USD supply and now underpinned at 1.3930. EURGBP: Still holding around 0.8680 again after yet another failure above 0.8700 and delicately poised still as core pairs continue to range.GBPJPY: A good base at 151.30 now amid the better risk tone JPY supply and core pair demand but sellers at 52.00 helping to cap atm.

I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats. Caution advised still as equally a case for buying dips still atm.

EURUSD: A good hold of 1.2060 again before finally breaking up through 1.2100-20 on the USD supply but sellers at 1.2150 capping the rally so far.USDJPY: Had a brief look below 108.50 amid the USD selling but the better risk JPY supply has helped to underpin and some pips banke on the retreat. Overall I still think we drop again.EURJPY: 131.50 becomes a good base now with core pairs underpinned amid better risk tones. Sellers poised in the rallies but still coming second for the moment.USDCHF: Broke down through the support at 0.9140 as EURUSD rallies but holding 0.9080 as EURCHF remains steady and better risk tones with the SNB ever watchful and ready to help.EURCHF: 1.1020 now providing a base helped by the SNB shadow after sellers at 1.1060 helped to cap

AUDUSD: That option interst duly did help contain yesterday and since broken up through 0.7780 to test 0.7820 and re-sells duly placed and pips banked as we dip back into 0.7780. I remain a rally seller overall while respecting the current dip demand and remain ever poised on the fade.USDCAD: Duly capped at 1.2420 as I highlighted yesterday now and retreating again amid the softer USD tones and CADJPY demand still.

Let's continue to be careful out there in all things. Staying safe must be our main priority still.

Interbank rates: 08.17 BST

GBPUSD 1.3956

EURUSD 1.2120

EURGBP 0.8686

GBPEUR 1.1511

GBPAUD 1.7914

GBPCAD 1.7156

GBPJPY 151.84

GBPZAR 19.7805

GBPHKD 10.8233

USDJPY 108.81

USDZAR 14.1583

EURJPY 131.92

EURCHF 1.1031

EURHKD 9.4025

AUDUSD 0.7790

USDCAD 1.2295

USDCHF 0.9100

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