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  • Writer's pictureMike Paterson

Range trading still amid mixed risk tones

Tuesday 13 July 2021

Equity and commodity markets still underpinned overall and that gave JPY pairs and the core components another lift but rally sellers prevailing again amid the fragile conditions with some USD demand notable.

US CPI the data focus at 12.30 GMT and markets will once again be second-guessing the Fed.

Patience and discipline in trading are key as ever and not being greedy as we continue to range tightly overall but good to see some greater levels of volatility return.

GBPUSD: Capped above 1.3900 again as EURGBP once again held 0.8530 and GBPJPY retreating but dip demand still present into 1.3850 as I warned yesterday. I remain a rally seller while keeping an eye on EURGBP and GBPJPY as always. EURGBP: Another hold of the strong 0.8530-35 support area and helping to cap GBPUSD but rally sellers poised still as we rally to 0.8550. GBPJPY: Good two-way business amid the variable risk tones time time capping into 153.50 but good demand at 152.80

I remain a GBP rally seller across the pairs but being patient as ever. Risk to the downside though still overall.

EURUSD: Another good hold of 1.1830 but still failing into 1.1880 as we continue to range tightly.USDJPY: Finally broke up through the pivotal 110.20-30 area after holding 110.00 as I highlighted yesterday but capping into 110.50 and some more re-sells duly placed part hedge for GBPUSD shorts too. EURJPY: 130.50 now a decent support line but rally sellers prevailing at 131.00-10.USDCHF: Decent support line at 0.9140 now with the SNB ever vigilant. EURCHF: That decent support line still at 1.0830 with SNB shadow/help ever present but rally sellers also poised still.

AUDUSD: Another retreat from 0.7500 where we have very large option interest on 15th but 0.7470 holding this time. Expect that option interest to contain range unless something kicks off elsewhere as a core driver. AUDJPY moves having an impact too of course.USDCAD: Strong support area still at 1.2450 amid firmer USD and CADJPY selling but 1.2500 now presenting a good cap now where we also have large options again lurking this week

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

Interbank rates: 08.45 BST

GBPUSD 1.3863

EURUSD 1.1850

EURGBP 0.8548

GBPEUR 1.1697

GBPCAD 1.7280

GBPJPY 153.00

USDJPY 110.37

EURJPY 130.78

EURCHF 1.0852

AUDUSD 0.7484

USDCAD 1.2467

USDCHF 0.9159

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