Tuesday 9 October 2018
Brexit, trade wars, and the pace of US Fed rate hikes amid general global financial uncertainty all still in play with a net result of some good two-way business across the board with US and Canadian desks off on hols.
I warned in yesterday's update not to get too carried away by the Brexit-led GBP rally and GBPUSD duly fell back to 1.3028 helped by EURGBP bouncing off the support around 0.8770. Dip buyers were happy to jump back in though as the jury remains out and we've been back up to 1.3107 only to fall again to 1.3050 this morning so far. Sellers now into 1.3085 then still around 1.3100 with larger into 1.3130 again and 1.3150 with more between 1.3180-00. Immediate demand now around the 1.3050 area then more at 1.3030 again and larger at 1.3000 then 1.2980 and 1.2960. I remain a GBP rally seller and buying back on the dips while we're ranging still.
EURGBP had a look back above 0.8800 (GBPEUR down to 1.1360) before falling back to look at 0.8770 again but has held once more. Bids still around 0.8770 and 0.8750.Sellers poised around 0.8800 again then 0.8830 and 0.8850. Good two-way opportunities to be had while we carry on ranging.
EURUSD failed above 1.1500 again after the large option contracts expiring yesterday at 1.1450 duly helped lend support as I warned.Immediate bids/support still between 1.1450-60 then 1.1430 and 1.1400 with sellers poised around 1.1500 with decent size options rolling off there today. Good sell interest also remains into 1.1530 then 1.1550-60, 1.1580 and 1.1600
USDJPY had a little wobble yesterday on some renewed risk-off Yen demand and fell to 112.83 before recovering some poise with large options today at 113.20 proving a bit of a magnet .Bids/demand now around 113.00 with larger into 112.80 still with sell interest around 113.50 then 113.80 and 114.00. I remain a rally seller. USDCHF has also traded tightly again as the jury remains out on the Greenback and the finger still pointing to some assistance from the SNB. EURCHF demand still around 1.1380 then 1.1360 and 1.1320.Sellers at 1.1430,1.1450 then larger between 1.1480-1.1500. USDCHF bids still at 0.9900, 0.9880, 0.9860 and 0.9830 with sell interest around 0.9960 then 0.9980-00. I remain a dip buyer on both.
AUDUSD felt a little love yesterday but still remains undermined by concerns over the US-China trade spat and Aussie$ rallies remain weak as I've been highlighting for a while now and I remain a sellers of those. Immediate demand now at 0.7060, with larger at 0.7030 and 0.7000 still.Sellers poised around 0.7100 and 0.7120 still. USDCAD broke up through 1.3000 on the NAFTA/USCMA trade deal uncertainties but fell back to 1.2950 and is ranging for the moment.Sell interest at 1.3000 again, then 1.3030 and 1.3050-60 with buyers now around 1.2950, 1.2920 and 1.2900.
Fickle Forex markets ever prevailing so get your orders in to take full advantage of these moves.
Have a good day out there one and all.
Twitter: @MSPFX and @MikePatersonFX
Interbank Rate 08.38 BST
GBPUSD 1.3080
EURUSD 1.1475
EURGBP 0.8773
GBPEUR 1.1397
USDJPY 113.32
USDCAD 1.2963
USDCHF 0.9946
GBPAUD 1.8490
GBPCAD 1.6950
GBPCHF 1.3007
GBPZAR 19.4251
GBPHKD 10.1409
EURHKD 8.8978
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