Friday 15 May 2020
The US/China spat continues as do the COVID-19 fallout concerns and FX pairs are ranging still as markets remain understandably cautious/unsure.
GBPUSD has seen some great two-way business again per my various Tweets and now posted new recent lows of 1.2166 but equally bouncing to test decent resistance/offers into 1.2250. EURGBP has held 0.8830 again but also finding sellers around 0.8865 amid the range trading on core pairs. GBPJPY found support at 130.20-25 again but rally sellers into 131.50 as core pairs both capped.
I stay poised to sell GBP rallies overall and buy back in the dips as ever but patience continues to be a virtue and entry level key as always.
USDJPY based around 106.80 again and rallied to test 107.50 amid Trump calling for stronger USD before once again retreating into 107.00 as I type. EURJPY held the 115.30-40 support again helped by some option expiries and core pair dip demand but failed above 116.00 as we stay tightly ranged. EURUSD once again held 1.0775-80 but currently failing at 108.20-30 amid the variable USD tones and soggy data. USDCHF held 0.9700 but equally failing at 0.9750( where we have 760m expiries today too ) as EURUSD rallies with EURCHF still holding 1.0500-20 amid the SNB support.
AUDUSD held 0.6400 helped by some large option expiries but failing into 0.6480 amid softer risk plays. USDCAD rallied but failed into 1.4150 but once again finding a base around that 1.4020 area that I've been highlighting amid variable risk/USD sentiment and oil prices.
Let's continue to be careful out there in all things. Staying safe must be our main priority still. Make sure you get some rest over the weekend.
Interbank rates: 08.43 BST