Friday 1 February 2019
Welcome to February and today brings the latest US NFP/wages report. After very strong data in December markets are expecting another upbeat set of numbers today so we'll trade the fact and see how it stacks up against this week's caution from the FOMC.If data disappoints then we'll expect further USD supply.
Meanwhile Brexit continues to grab a few headlines and will do so for a long long while yet but the jury remains fully out on which way the outcome will fall as the next clock ticks down
Yesterday GBPUSD duly held 1.3100 in the retreat from 1.3150+ and found month-end fix buyers to drag it back up there only to fall back in Asia to test 1.3080 so good two-way business and we're ranging still this morning. EURGBP has been tightly bound but finding a few sellers as the month-end demand disappears and some general EUR supply returns. I remain GBP bearish overall while definitely respecting the current GBP demand and will continue to rally sell then take profit in the dips.New month maybe but no change as far as I'm concerned right now.
EURUSD has fallen through the decent buy interest at 1.1450 but found some demand ahead of the bids I highlighted at 1.1420 while USDJPY duly fell through the 108.60 bids only to run into more around 108.50. USDCHF remains underpinned as EURUSD falls and EURCHF finds dip demand but as Euro selling now currently prevails in these fickle times.
AUDUSD had a look at 0.7300 on leaks of better Chinese data and softer USD but has since retreated once again to fall below 0.7250 while USDCAD has remained on the back foot but finding some dip demand with demand building around 1.3120 still, then 1.3100.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Have a good week-end one and all.
Interbank Rate 08.30 GMT