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  • Writer's pictureMike Paterson

Wobbly Pound as another week gets underway

Monday 20 January 2020

Some GBP weakness notable this morning on the back of UK Chancellor Javid making some dovish Brexit-related weekend comments.Throw in some UK wages/jobs data tomorrow likely to lend support for a BOE rate cut next week (I'm not sure they will cut though at this point) and we can expect sellers to prevail albeit in the tight ranges still.

Elsewhere oil prices have seen a sharp rally, albeit with some retracement since, on reports of Libya closing down half of its exports. Today sees US markets mostly closed for Martin Luther King Day so liquidity in that session will be a little thin.

GBPUSD has been down to test 1.2960 this morning helped by some GBPJPY supply as USDJPY caps into the pivotal 110.30 again.Friday's rally provided another good sell opportunity which I hope you took advantage of but good two-way business/pips to be had still I believe. EURGBP duly held 0.8500 amid support from those large option expiries on Friday and the general GBP retreat but rally tempered by EURUSD also falling. GBPJPY has fallen to test 142.80 support helped by USDJPY capping into 110.30 and the general GBP weakness.

I stay poised to sell GBP rallies overall and buy back in the dips as ever but continue to see some good two-way business as we continue in these tight ranges.

EURUSD has fallen to 1.1079 but has another large option expiry interest today at 1.1100-05 helping to contain/cap. USDJPY has held 110.00 again but similarly capped at the pivotal 110.30. Toss a coin time as BOJ announce their latest interest/policy decisions tonight at 03.00 GMT but the usual hot air expected.EURJPY remains tightly bound still with good two-way business on core pairs.USDCHF has found some support now around 0.9660 helped by the EURUSD retreat but with sellers still poised as EURCHF remains on the soft side.

AUDUSD has finally broken down through the good demand at 0.6880-85 helped by some AUDJPY supply and a failure to hold above 0.6900. USDCAD has held 1.3080 and remains tightly bound with a fall to 1.3050 helped by the oil price spike.

Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.

A glorious 12-hour day out (and a 580 mile round trip) was had on Saturday to witness a scrappy but ultimately deserved 2-1 victory )our first since September) to the acclaim of the 233 travelling fans. A memorable occasion as I'm sure it currently is for the England cricket fans in SA as we take the last wicket to claim a comprehensive victory.

Have a good day/week out there one and all.

Interbank rates: 08.40 GMT

GBPUSD   1.2978

EURUSD   1.1089

EURGBP   0.8545

GBPEUR   1.1700

GBPAUD   1.8879

GBPCAD   1.6959

GBPJPY   142.92

GBPZAR   18.8874

GBPHKD   10.0618

USDJPY   110.15

USDZAR   14.5564

EURJPY   122.14

EURCHF   1.0738

EURHKD   8.5998

AUDUSD   0.6873

USDCAD   1.3068

USDCHF   0.9684

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