Softer risk tones as another week gets underway

Monday 7 June 2021

Jury on the Greenback still out after the NFP data as we start another week.Some USD demand but softer risk sentiment sees USDJPY and USDCHF also on the back foot with JPY and CHF demand notable again. ECB on Thursday a focus given recent comments but I'm not holding my breath.

As always in these fickle times ignore the noise and be careful with your trading as we continue to range tightly. Pick your preferred entry/exit levels and don't be greedy or over-analyze. Patience and discipline are key too of course. Let the algos do the work around data releases and headlines and take advantage of that as suits your interest.

GBPUSD: A good hold of 1.4100-10 earlier this morning but rallies weak atm with GBPJPY selling and EURGBP up through 0.8600 helping to underpin this morning. I remain a rally seller but respecting the dip demand/range trading.EURGBP: A good hold of 0.8585 again and up through 0.8600 that in turn is capping Cable too.GBPJPY: Now failing around 155.30 where we had some support previously amid the softer risk tones and now testing 154.50 but with some inherent USDJPY demand lurking into 109.30

I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats.

EURUSD: A good cap at 1.2180 on Friday amid the general USD demand returning after the NFP sell off but demand around 1.2150 so far on the retreat.USDJPY: Yet another hold of 109.30 in latest retreat amid softer risk sentiment tones but ranging tightly still. Decent option interest in play over next couple of days to help contain.EURJPY: 133.60 now capping as I warned on Friday but decent line of defence at 133.00 holding so far.USDCHF: Holding 0.8980 again in its latest retreat after failing at 0.9060 post-NFPs as EURUSD caps again but rallies still tempered by EURCHF supply but with the SNB ever vigilant/helpful. EURCHF: Capped into 1.0950 now but holding 1.0930 again with SNB shadow ever present

AUDUSD: A decent hold of 0.7650-60 on Friday and decent rally post-NFPs with good support now at 0.7720 but banging its head against 0.7750 atm.USDCAD: Failure into 1.2140 but holding 1.2070 in the retreat as we continue to range amid variable USD and oil tones. CADJPY selling also helping to support the dips atm

A disappointing and sad end to the First Test at Lords with England failing miserably to accept the very fair and sporting declaration challenge set by New Zealand's skipper Kane Williamson. Check my various rants on Twitter @MikePatersonFX for more detail.

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

Interbank rates: 08.48 BST

GBPUSD 1.4134

EURUSD 1.2165

EURGBP 0.8605

GBPEUR 1.1618

GBPAUD 1.8249

GBPCAD 1.7091

GBPJPY 154.65

GBPZAR 19.0215

GBPHKD 10.9588

USDJPY 109.40