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Writer's pictureMike Paterson

US Dollar supply still notable

Wednesday 10 February 2021

The Greenback remains on the back foot amid softer tones to the US economy and increasing belief that further stimulus is still needed. Risk sentiment remains positive overall as equities and commodities continue to stay underpinned.


As if you need reminding I'll repeat again that the Forex jury still remains out amid all the noise so keep playing what's in front of you and don't over analyze or assume anything.


GBPUSD found a base at 1.3780 this time around and finally cleared 1.3800 then 1.3825 to now post highs of 1.3854 this morning amid the USD selling. EURGBP yesterday failed into 0.8785 but equally found support at 0.8760 only to now fall below as GBPUSD continues its rally. Lows of 0.8753 (GBPEUR highs 1.1430) so far but some support expected down here too unless GBPUSD continues to outstrip EURUSD amid all the USD selling.GBPJPY found a decent base at 144.10 as core pairs found dip demand too amid the better risk tones and USDJPY clung onto 104.50.


I still have a naturally bearish stance on GBP overall and remain poised to sell into rallies but respecting dip demand still with price action ever fickle. Equally a case still for going long in the dips therefore as we continue to range. Patience and not getting greedy remain key.


USDJPY has finally broken down through 104.50 amid the USD supply after clinging on steadfastly yesterday but more support expected in the dips.EURJPY failed into 126.90 amid the general JPY supply but holding 126.60 for the moment.

EURUSD found good support this time at 1.2080 and now posted fresh highs of 1.2143 this morning amid the general USD supply. USDCHF found a good cap at 0.8950 this time and duly retreated as EURUSD rallied but has held above 0.8900 this time so far with the SNB ever watchful.


AUDUSD found support at 0.7700 this time around with help from the softer Greenback tones. Failure around 0.7750 again but holding 0.7730 so far. USDCAD found a good cap this time at 1.2750 as oil price rallied and the Greenback fell and now broken down through decent 1.2700 support.


I said yesterday that it was probably too much to hope for in Southend's visit to Newport last night to look for a win but lo and behold, it's a funny 'ol game and 3 points duly snatched after a solid second half display. Happy days....


Let's continue to be careful out there in all things. Staying safe must be our main priority still.


Interbank rates: 08.21 GMT

GBPUSD 1.3827

EURUSD 1.2126

EURGBP 0.8770

GBPEUR 1.1401

GBPAUD 1.7869

GBPCAD 1.7549

GBPJPY 144.61

GBPZAR 20.3556

GBPHKD 10.7263

USDJPY 104.57

USDZAR 14.7037

EURJPY 126.82

EURCHF 1.0805

EURHKD 9.4007

AUDUSD 0.7738

USDCAD 1.2690

USDCHF 0.8908


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