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  • Writer's pictureMike Paterson

US Dollar in demand as we wait on the FOMC

The US Federal Reserve FOMC announce their latest interest rate decision later today and we've seen some US$ demand on the run-in.

GBPUSD yesterday fell to once again test the 1.3350 support area I've highlighted a few times lately. The aversion of a Brexit Withdrawal Bill revolt saw a sharp rally back above 1.3400 but the 1.3420-30 area that I've also highlighted once again proved a sticking point and down we went again to now post fresh lows of 1.3310 this morning after some fairly neutral UK inflation data.Immediate support/buying now into 1.3300,then 1.3280 and the larger 1.3240-50 line in the sand. Sellers around 1.3350, then 1.3380-00 with the 1.3420-30 line and then 1.3450 still expected to cap for the moment.

Keep selling those rallies as we continue to range-trade but don't get greedy.

EURGBP has been up again to test 0.8820 sell interest (GBPEUR down to 1.1340) after holding 0.8780. Buyers poised there still then 0.8750 and 0.8730 still. Sellers between 0.8820-30 again then 0.8850. Overall the Pound remains a little fragile but going nowhere in a real hurry.

EURUSD has fallen to test 1.1730 support amid the general US$ demand.Buyers between 1.1720-30 still with more interest into 1.1700-05 where we have large option contract interest rolling off today. Sellers now between 1.1780-00 and larger still poised into 1.1830 then 1,1850.

USDJPY has broken 110.50 and been up to test the 110.80 resistance/sell area. Buyers now around 110.50 then 110.30 and 110.00. Sellers between 110.80-00 still then 111.20 and 111.50. USDCHF has also rallied to test 0.9900 but rally tempered by some EURCHF sell interest between 1.1620-30 and 1.1650.

The Aussie, NZ and Canadian $ have all found sellers again as the US% currently holds the best-of-a-very-average-bunch title.AUDUSD has buyers at 0.7550 still then 0.7530 and 0.7500.Sellers between 0.7680-00 then 0.7630 and 0.7650. USDCAD buyers now around 1.3000 then 1.2960 and 1.2920. Sellers around 1.3050 then 1.3075 and 1.310.

Fickle and fragile markets prevailing behind all the noise and hype so get your orders in to take full advantage of the moves.

Have a good day out there one and all.

Interbank Rate 09.35 BST GBPUSD   1.3326 EURUSD   1.1736 EURGBP   0.8814 GBPEUR   1.1344 USDJPY   110.67 USDCAD   1.3043 USDCHF   0.9893 GBPAUD   1.7612 GBPCAD   1.7378 GBPCHF   1.3182 GBPZAR   17.8040 GBPHKD   10.3308 EURHKD   9.1070

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