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Writer's pictureMike Paterson

US Dollar jury still out amid steady risk sentiment

Tuesday 11 August 2020

Seems like the Greenback is still making its mind up for the moment so FX pairs struggling to break out of recent ranges as risk sentiment remains steady overall but ever fragile potentially.


Gold and silver are both on the retreat in fairly rapid style after the recent march higher but oil and equities remain underpinned amid the scenario of more cheap money heading into markets amid expectations of a COVID resurgence. UK jobs/wages data this morning was dismal as expected and with the promise of worse to come as the Government reduces its COVID-led help but GBP pairs shrugging it off.


GBPUSD had another dip into 1.3000-20 yesterday before rallying to 1.3100 again with EURGBP breaking down through 0.9000 and 0.8980 also helping to uderpin. Since been down to look at 1.3050 amid the soggy jobs/wages data but finding dip demand there.EURGBP made a steady retreat and eventually broke through the good 0.8980 support area/bids before running out of steam and now testing 0.9000 again.

GBPJPY found support at the higher 138.30 pivot but since failing into 139.00 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 found support again at 105.70 but now capping at 106.25 amid the variable USD tones. EURJPY found support at 124.30 and enjoying some general EUR demand and better risk tones to post 124.90 as I type. EURUSD had a generally soggy day down to test those 1.1720-25 bids after finding the early supply at 1.1800 where we had the large options expirie but some demand notable this morning.USDCHF enjoyed a decent rally to look at 0.9180 as EURUSD retreated and with EURCHF still ranging with the SNB still lurking but now back down to 0.9140 as EURUSD rallies.


AUDUSD duly found support at the 0.7140 area I highlighted yesterday amid some better risk sentiment/AUDJPY demand but equally can't get back above 0.7185 for the moment. Some re-sells duly placed with Victoria COVID lockdown still in focus but support still into 0.7140 so not getting greedy. USDCAD capped at 1.3400 again and now testing 1.3310 as I type amid firmer oil price and some CADJPY demnd.


Markets are ever-fickle but good two-way pips to be had so don't forget to take advantage of my 1-2-1 mentoring sessions if there's areas of trading these markets or how to make best use of the order boards and expiries, that you might need some further help with.


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:  08.40 BST

GBPUSD   1.3072

EURUSD   1.1738

EURGBP   0.8978

GBPEUR   1.1137

GBPAUD   1.8237

GBPCAD   1.7429

GBPJPY   138.80

GBPZAR   22.9982

GBPHKD   10.1347

USDJPY   106.17

USDZAR   17.5724

EURJPY   124.62

EURCHF   1.0742

EURHKD   9.1005

AUDUSD   0.7167

USDCAD   1.3334

USDCHF   0.9152


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