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Writer's pictureMike Paterson

Fickle Forex markets continue to keep traders guessing

Thursday 15 August 2019

The roller-coaster ride continues in tight ranges as news and data combine to keep markets and traders/bots dancing on hot coals amid thin Summer liquidity conditions.


GBPUSD failed around 1.2100 again but the retreat has held 1.2045-50 as per the order boards so far helped by EURGBP selling and some GBPJPY buying this morning with a flash spike in USDJPY.EURGBP fell below 0.9250 amid some general EUR suppoly but holding around 0.9220 still amid the uncertain tones for both Euro and Pound and risk volatility. GBPJPY has tested 129.00 but capped by USDJPY supply at 106.30 again.


I remain GBP bearish overall and will continue to rally-sell as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout but happy to buy back in the dips as always.No reason to change my view any time soon although we must be respectful, as ever of the fickle risk swings.UK Retail Sales data at 08.30 the algo-feeding risk. Talk of a no-confidence vote in UK govt continues but without substance still.


EURUSD has fallen through the 1.1150-60 support before stalling at the next tranche at 1.1130 while USDJPY duly fell back ( I did say yesterday that I thought the sharp tariff news-led spike was overdone) and has been down to 105.72 before another rally this morning which rally sellers like me welcomed.


USDCHF remains range bound tempered by EURCHF finding rally sellers again amid the latest EURUSD supply but with the SNB ever watchful and perhaps providing support atm.


AUDUSD remains tightly bound but on the back foot with sellers above 0.6800 but buyers around 0.6750 holding so far. USDCAD has staged another decent rally but failed again around 1.3320 ( I warned of larger interest there yesterday) and remains range bound.


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


Don't forget I offer 1-2-1 mentoring if there's areas of trading this latest volatility, or how to make best use of the order boards and expiries that you might need some further help with.


I shall be at Lords again hoping for some cricket after yesterday's wash-out and for the remainder of the week to watch the England vs Australia Test match but will be getting my updates to you each day before I leave.


Have a good day out there one and all.


Interbank Rate 08.20 BST

GBPUSD   1.2073

EURGBP   0.9229

EURUSD   1.1145

GBPEUR   1.0832

GBPAUD   1.7804

GBPCAD   1.6055

GBPJPY   128.24

GBPZAR   18.4517

GBPHKD   9.3610

USDJPY   106.20

USDZAR   15.2804

EURJPY   118.39

EURCHF   1.0862

EURHKD   8.6420

AUDUSD   0.6782

USDCAD   1.3297

USDCHF   0.9742


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