Monday 10 August 2020
The firmer USD tones eventually seen on Friday after a mixed reaction following the release of better than expected US jobs data continue to prevail as we enter a new week.
Risk sentiment slightly better but it's all very fragile out there still.
GBPUSD traded tightly on Friday providing some good two-way business but earlu afternoon saw a sudden drop amid the USD demand and a test of 1.3000 before bouncing back to 1.3077 in Asia.EURGBP failed into 0.9050 again and since fallen to test 0.9000 before running into support. Good demand at 0.8980-85 still.GBPJPY once again found support at 137.80 but since failing above 138.50 with the risk sentiment jury still out overall.
I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever.Patience will continue to be a virtue and entry level key as always. I still expect to continue seeing dip demand though as we continue to range.
USDJPY has found support now at 105.70 but equally capped at 106.05 atm as normal service resumes.
EURJPY found support at 124.50 but capped at 125.00 so far again and now finding support at 124.60 as core pairs both found rally sellers. EURUSD has based around 1.1750 but equally finding supply at 1.1800 where we have large options expiries today. USDCHF found support at 0.9120 as EURUSD retreated and with EURCHF still ranging with the SNB still lurking and testing 0.9150 as I type as EURUSD looks heavy again.
AUDUSD failed into 0.7220 this time and now fallen through the 0.7180 support area I've been highlighting with Victoria COVID lockdown still in focus but support now into 0.7140.USDCAD held 1.3320 and then rallied to test 1.3400 post US and Canadian jobs data but failing to break higher so far.
I wish you good trading and let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.37 BST