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Writer's pictureMike Paterson

Calmer waters for the moment but still very fragile

Monday 23 March 2020

Markets continue in fragile mood as COVID-19 continues to tighten its grip in Europe, USA and elsewhere. The US Senate votes on a Coronavirus economic package at 13.45 GMT today having failed to reach agreement yesterday while earlier in Asia we saw the BOJ buy JPY201.6B of ETF's equalling last Thursday's intervention. A little risk-off sentiment prevailing as European equity markets head lower after Asian losses and oil falling earlier too.


Strange times out there right now with the UK and others imposing social distancing measures and threatening more, even lockdown, to come if current advice not heeded.


GBPUSD has capped above 1.1700 but holding around 1.1575-80 on the retreat so far. EURGBP has been up to 0.9252(GBPEUR down to 1.0807) having held at 0.9000 (1.1110) on Friday and currently holding 0.9200 (1.0870).

GBPJPY capped at 132.00 but held in a a tight range since retreating below 129.00 on softer risk sentiment with core pairs a little steadier too but all relative of course.


I stay poised to sell GBP rallies and buy back in the dips as ever.


USDJPY has found a cap around 111.40 again but support into 109.50 while EURJPY has been down to 117.75 from 119.30 but relatively contained since.EURUSD dropped again to test 1.0630 but since finding sellers above 1.0750.USDCHF has based at 0.9750 but equally finding sellers around 0.9900 still with EURCHF again falling below that line at 1.0540 to post 1.0525 before rallying to 1.0567.


AUDUSD capped at 0.5940 but since found support at 0.5700 while USDCAD found support at 1.4150 and has rallied to 1.4490 on the softer oil/USD demand/risk-off impact again.


Fickle Forex markets ever prevailing so be ready to jump on moves with your entry/exit levels and 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: 08.25 GMT

GBPUSD   1.1608

EURUSD   1.0700

EURGBP   0.9214

GBPEUR   1.0850

GBPAUD   2.0097

GBPCAD   1.6775

GBPJPY   127.98

GBPZAR   20.4795

GBPHKD   8.9997

USDJPY   110.22

USDZAR   17.7084

EURJPY   117.97

EURCHF   1.0549

EURHKD   8.2946

AUDUSD   0.5772

USDCAD   1.4446

USDCHF   0.9856


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