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  • Writer's pictureMike Paterson

USD demand continues as markets wait on CPI data

Wednesday 11 August 2021

US Dollar demand still notable amid US bond yields rising further off recent lows and markets price in tapering from the FOMC sooner rather than later.Today's US inflation data at 12.30 GMT the immediate focus.

JPY and CHF supply still notable on core pairs and crosses which is underpinning other core pairs too in the dips, otherwise we might already be a whole lot lower in those.

Patience and discipline in trading are key as ever and not being greedy as we continue to range tightly overall. Still some good two-way pips to be had as the jury remains out so picking your moments and levels are more important than ever.

GBPUSD: 1.3830 support now broken but next line of bids/support at 1.3800 holding the fall so far helped by some GBPJPY demand. EURGBP on the rise again and helping to cap GBPUSD.I remain a rally seller overall while keeping an eye on EURGBP and GBPJPY as always.EURGBP: 0.8485-00 now providing good support and now testing 0.8480-85 offers as I type as Euro finds some general dip demand elsewhere too.GBPJPY: 152.80 now supporting as core pairs find dip demand and USDJPY tests 110.80 but sellers still poised around 153.20-30

I remain a GBP rally seller across the pairs but being patient as ever. These are risk sentiment markets and ever fickle so good/tight position management essential.

EURUSD: The pair continues to feel heavy but finding support at 1.1700 now amid some general EUR demand too with cross flows very much making an impact still.USDJPY: A good hold of 110.30 and the rise continues as I've been warning as we now test 110.80.Looking underpinned still amid the general USD demand/JPY supply.EURJPY: 129.80 still providing resistance but underpinned at 129.40-50 again amid the general JPY supply and some EUR dip demand prevailing.USDCHF: 0.9200 now providing good support amid the USD demand/EURUSD retreat with the SNB always keeping an eye on matters too and now testing 0.9240. EURCHF: 1.0780 still the new base with SNB shadow ever present and bids growing around 1.0800 but sellers still poised.

AUDUSD: A failure into 0.7360 again amid the USD demand and some sizeable option contract interest and pushed the pair back down to 0.7320-30 again as I type.USDCAD: Finding support at 1.2520 now again helped by firmer USD after capping at 1.2580 then 1.2560 this time as oil price firms still amid the CADJPY oil/risk related action.Some large option contract interest nearby tomorrow casting a shadow.

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

Interbank rates: 08.50 BST

GBPUSD 1.3815

EURUSD 1.1712

EURGBP 0.8476

GBPEUR 1.1797

GBPJPY 153.08

GBPCAD 1.7324

GBPZAR 20.4757

GBPHKD 10.7108

USDJPY 110.76

EURJPY 129.77

EURCHF 1.0816

EURHKD 9.0769

AUDUSD 0.7332

USDCAD 1.2530

USDCHF 0.9233

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