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Writer's pictureMike Paterson

Markets continue to make their mind up

Thursday 8 October 2020

More of the same uncertainty and fickle FX markets sees good two-way opportunity amid variable risk and USD sentiment.


GBPUSD found a base at 1.2840-50 in yesterday's retreats so the re-sells were gladly banked but has since been back to look at 1.2960-70 this morning with GBPJPY demand notable again. Re-sells duly made again up here so let's see what transpires today. EURGBP has capped above 0.9160 and now down through 0.9080 as GBPUSD finds a bid and EURUSD stands still amid the various cross flows. I remain a dip buyer.GBPJPY remains underpinned as core pairs find dip demand and has held 136.80 to plough back up past 137.30 this morning on the better risk tones.


I stay poised to sell GBP rallies as my preferred side and buy back in the dips as ever.  Patience continues to be a virtue and entry level key as always. I still see dip demand though with markets and risk sentiment still in a state of uncertainty overall.


USDJPY has been tightly bound on the variable risk/USD tones and failing above 106.00 but still not expecting a collapse any time soon. EURJPY also turning back up to 124.80 as I type on the better risk tones and core pair dip demand but also tightly bound. EURUSD still underpinned by 1.1730-50 option interest but rally sellers also poised around 1.1780.USDCHF is testing 0.9180 again now as EURUSD retreats from 1.1780 with EURCHF steady and SNB casting its shadow still.


AUDUSD has held 0.7120 and some pips gratefully banked again before rallying through 0.7165 this morning and re-sells duly placed again. USDCAD failed above 1.3300 and now falling through 1.3250 amid the firmer risk/oil price/softer USD plays.


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


Interbank rates:  08.50 BST

GBPUSD   1.2943

EURUSD   1.1767

EURGBP   0.9087

GBPEUR   1.1000

GBPAUD   1.8058

GBPCAD   1.7136

GBPJPY   137.13

GBPZAR   21.5430

GBPHKD   10.0347

USDJPY   105.98

USDZAR   16.6248

EURJPY   124.69

EURCHF   1.0787

EURHKD   9.1225

AUDUSD   0.7165

USDCAD   1.3241

USDCHF   0.9168


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