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Writer's pictureMike Paterson

Risk-off sentiment again as the world remains a fragile place

Thursday 10 January 2019

Equity markets and oil prices are retreating again with gold bouncing back up and that's brought back some more currency safe-haven appetite with JPY and CHF leading the way again. These markets remain fickle and fragile as I've been warning with Trump throwing his toys out the pram on a number of issues and Brexit also back on the front page as the UK government now loses two votes in parliament.

GBPUSD has been up to test 1.2800 again but has now fallen back to look at support around 1.2750 this morning helped by GBPJPY supply again. EURGBP continues to look underpinned as GBP falters and now been up to test those 0.9050 offers (GBPEUR down to 1.1045) before Euro sellers prevailed again. I remain GBP bearish overall and happy to jump on rallies

EURUSD continues to see good two-way business but looks underpinned still and has been up to 1.1570 before retreating. EURJPY and EURCHF supply also helping to cap rallies into 1.1580. USDJPY has had another nice dip to 107.77 after that failure at 109.00 and subsequent break back down of 108.30 and 108.00 on the renewed risk-off and Japanese exporter JPY demand.USDCHF has now also broken lower on the CHF demand/EURUSD rally combo to post fresh recent lows of 0.9716 but still finding some degree of support from EURCHF dip demand now above 1.1220 with the SNB ever-watchful.

AUDUSD continues to look underpinned helped by renewed safe-haven gold demand, a correlation that's been notable again lately, but still has rally sellers poised including me. USDCAD had a wobble to 1.3180 on the BOC interest rate no-chsnge decision/rhetoric but we've seen some CAD weakness reappear as oil prices retreat and CADJPY sellers return.

Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.

Have a good day out there one and all.

Interbank Rate 08.25 GMT GBPUSD   1.2754 EURUSD   1.1542 EURGBP   0.9042 GBPEUR   1.1055 GBPAUD   1.7775 GBPCAD   1.6894 GBPHKD   9.8882 USDJPY   108.08 EURJPY   124.58 GBPJPY   137.92 AUDUSD   0.7177 EURCHF   1.1249 USDCAD   1.3240 USDCHF   0.9762 EURHKD   8.9437


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