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Writer's pictureMike Paterson

US Dollar selling again as a new week gets underway

Monday 20 August 2018

Going nowhere in a hurry still but we've seen a general softness to the Greenback as markets wind up for another week in the ever-fickle world of Forex.

It's still not just a straight US$ play though but attention will shift toward US Fed chair Powell's potentially keynote speech from the annual Jackson Hole shindig later in the week.

GBPUSD has camped above 1.2700 but failing so far to make much headway above 1.2750 with GBP sellers poised elsewhere still too and helping to cap rallies as Brexit concerns and indifferent UK economic data remain in play.Immediate support/buying interest around 1.2700 still then larger into 1.2680 and 1.2650.Sellers still poised between 1.2750-60 with larger between 1.2780-00 and 1.2830. Keep selling the rallies but continue to be aware of the ongoing dip demand given the extensive recent falls.

EURGBP has rallied further to post highs of 0.8980 (GBPEUR down to 1.1133) on the general EUR demand again coupled with the overall softness in the Pound. Sellers still poised between 0.8980-0.9000 then 0.8920. Some buyers now around 0.8950 and 0.8930 then larger into 0.8900 still.

EURUSD has found a few buyers again helped by the Greek bailout ending leaving them free to borrow money in the markets again but at what cost overall?. Sellers still notable into 1.1450 then 1.1480-1.1500 will help cap further rallies if we get anywhere close.Buyers immediately around 1.1400 still then more into 1.1380 and 1.1350 again.

USDJPY continues to range trade too but has found the expected demand between 110.30-50.Sellers poised now around 110.80 then 111.00, 111.30 and 111.50 still. USDCHF remains underpinned above 0.9930 with the SNB never too far away and that is still filtering through to EURCHF which has which has been up to test 1.1400.Sellers remain poised on both though as I've been warning but we can continue to expect dip demand still.

AUDUSD duly rallied through 0.7280-0.7300 to post 0.7321 where a few sellers still remain poised. Immediate buying interest at 0.7300 and 0.7280 then 0.7250 still. Sell interest between 0.7320-30 and 0.7350. USDCAD has fallen once again but still finding a line in the sand at 1.3050 for the moment. Sellers now into 1.3080-00 with buyers poised around 1.3050, 1.3030 and 1.3000 still.

Fickle Summer markets still prevailing so get your orders in to take full advantage of these moves.

The mighty Shrimpers of Southend United returned back to the hallowed Hall and put in another impressive shift albeit against poor opposition to produce the season's first win. Onwards n upwards!

As for England's batsmen, they really have lost the mindset to bat out a Test match and dig in when needed. Too much ODI and IPL/T20 methinks but is it really that simple an explanation/excuse?. Due credit to the Indian bowlers though who made the most of favourable conditions.

Remiss of me in my haste on Friday not to make note of the passing of Aretha Franklin. "What made her voice so special?" I heard one interviewer ask. "Just listen to it" came the reply. Enough said. RIP Aretha and thank-you for providing so much great music.

Have a good week out there one and all.

Interbank Rate 08.28 BST GBPUSD   1.2741 EURUSD   1.1421 EURGBP   0.8963 GBPEUR   1.1155 USDJPY   110.65 USDCAD   1.3064 USDCHF   0.9950 GBPAUD   1.7445 GBPCAD   1.6645 GBPCHF   1.2676 GBPZAR   18.6132 GBPHKD   9.8788 EURHKD   8.8560


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