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Writer's pictureMike Paterson

US Dollar demand returns after positive G20 tones

Monday 1 July 2019

The G20 meeting brought some positive noises on US-China trade talks and that's helped bring some more risk-on sentiment to markets and general US Dollar demand. Still nothing actually agreed but the optimistic tones and no new tariffs has been enough to bring some calm, but for the me the jury remains well and truly out still.


GBPUSD has failed above 1.2700 again but since fallen back on the general USD demand to test 1.2650 this morning. EURGBP found some support below 0.8930 (GBPEUR sellers at 1.1200) after retreating from its month-end highs and remains underpinned. GBPJPY rallied on the better-risk/weaker Yen gap on the Asian opening but has since fallen back as rally sellers remain poised.


I remain GBP bearish overall still and will continue to rally-sell as my preferred strategy amid all the global uncertainty/indecision including Brexit/political fallout.


EURUSD has retreated to post 1.1317 but has large option expiries today at 1.1300 and 1.1320 helping to support while expiries at 1.1400 should continue to cap rallies. USDJPY rallied/gapped higher on the positive US-China trade talk to clear out the decent sell interest at 108.30 before failing at the next tranche at 108.50 (large expiries today too) ad retreating below 108.30.USDCHF remains underpinned after the recent SNB help and now broken back up through 0.9830 on the better risk plays and general USD demand as EURUSD retreats.


AUDUSD gapped higher on the AUDJPY demand but has since retreated below 0.7000 as sellers return. USDCAD remains on the back foot on the firmer oil/CADJPY demand combo again but finding dip demand around 1.3060.


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


Feel free to contact me about discounted 1-2-1 mentoring rates if you need some clarity on current moves.


Have a good day/week out there one and all.


Interbank Rate 08.45 BST

GBPUSD   1.2658

EURUSD   1.1323

EURGBP   0.8943

GBPEUR   1.1179

GBPAUD   1.8090

GBPCAD   1.6577

GBPJPY   137.11

GBPZAR   17.8242

GBPHKD   9.8137

USDJPY   108.31

USDZAR   14.1033

EURJPY   122.64

EURCHF   1.1132

EURHKD   8.7887

AUDUSD   0.6997

USDCAD   1.3097

USDCHF   0.9832


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