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Writer's pictureMike Paterson

Better risk-sentiment prevailing

Wednesday 25 March 2020

After the US Fed's recent unprecedented actions and now the government's stimulus package finding support we are seeing continuing risk appetite as European trading gets underway with equities rising and safe-haven currencies on the back foot again. The Pound is making some solid gains across the board but the Aussie $ also shining. I'm not convinced by the justification of such sentiment but as I tweeted earlier we may be seeing some decent correction of previously over-extended moves in currencies such as these. Either way I'm not convinced we are on a one-way ticket of relief-rally just yet.


I will also repeat my other advice..."Remember though in these days of self-isolation that our mental well-being and being able to trade objectively is more important than ever. Set out your day-to day and longer term goals and keep everything in perspective." I will add this too, "Don't go chasing losses or get rich quick schemes."


GBPUSD rallying to 1.1931 so far this morning, just short of Friday's highs, helped by GBPJPY and GBPCHF demand and EURGBP down to 0.9078 as EURUSD rallies less. EURGBP has been down through the pivotal 0.9160 area to post 0.9078 amid the GBP strength but finding some demand as I type. GBPJPY remains in steady ascent with core pairs finding dip demand as I warned yesterday with sellers like me biding their time to re-enter.


I stay poised to sell GBP rallies and buy back in the dips as ever but not standing in the way of this current moving truck.


USDJPY has found a cap above 111.50 yet again but support into 110.75-80 and now finding some risk-on support to rally again. EURJPY has also enjoyed a solid rally to 120.83 on the better risk/core pair dip demand.EURUSD has been up to 1.0883, down to 1.0745 and back to 1.0840 as I type amid the general USD supply and better risk.USDCHF capped around 0.9850 again but losses below 0.9800 tempered buy some EURCHF demand again and now that pair is back above 1.0600.


AUDUSD has rallied to 0.6074 after finding a line around 0.5940-50 again as AUDJPY demand returned too. USDCAD has capped around 1.4520 amid the general USD supply and better risk sentiment with CADJPY demand returning.


Fickle Forex markets ever prevailing so be ready to jump on moves with your orders as always. Caution advised as ever if you're not sure.


Lots going on right now, and the foreseeable future, so don't forget that I offer 1-2-1 mentoring if there's areas of trading these volatile markets or how to make best use of the order boards and expiries, that you might need some further help with.


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


Interbank rates: 08.35 GMT

GBPUSD   1.1875

EURUSD   1.0832

EURGBP   0.9097

GBPEUR   1.0989

GBPAUD   1.9622

GBPCAD   1.7037

GBPJPY   132.77

GBPZAR   20.6311

GBPHKD   9.2067

USDJPY   111.65

USDZAR   17.2825

EURJPY   120.73

EURCHF   1.0612

EURHKD   8.3781

AUDUSD   0.6069

USDCAD   1.4298

USDCHF   0.9795


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