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Writer's pictureMike Paterson

Markets still in wait and see mode as FOMC decision looms

Wednesday 20 March 2019

Today at 18.00 GMT we get the latest US Fed FOMC interest rate/policy decision and markets remain understandably cautious. No change in rates but more dovish tones expected.Good two-way business continues across most currency pairs as Brexit and the other various global scenarios continue to play out/negate each othe.


We've seen GBPUSD fail around 1.3280 again before dropping to 1.3212 amid reports that May will ask EU for a 3-month Brexit extension which would be less than the EU are reported to be keen on while many MPs are lobbying EU countries to refuse any extension at all. Once again though the delayed/No Brexit talk has not been taken positively with many commentators now talking about a General Election coming soon. I've warned of the political fallout for many months now as you all will be aware so let's see what actually transpires. EURGBP duly found support around 0.8530 (GBPEUR sellers at 1.1725) as the Pound retreated.


I remain GBP bearish overall and continue to rally-sell as my preferred strategy but I continue to see good two-way business.


EURUSD also continues to range tightly with variable EUR cross trading helping to keep the core pair contained as well as the FOMC uncertainty.USDJPY is also tightly bound helped by variable risk sentiment and ongoing GBPJPY supply/demand and we've seen a dip back down to test support at 111.30 while capping at 111.70.


USDCHF also remains underpinned/tightly ranged amid the steady EURUSD and EURCHF while AUDUSD has broken down through 0.7080 support only to halt into the next decent tranche at 0.7050. Large option interest rolling off again today at 0.7100 to help keep it capped.


USDCAD yesterday fell to test 1.3250 as oil prices rallied to 4-month highs but has since climbed back above 1.3330 as oil did a similar U-turn and the jury remains well and truly out still.


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


Have a good day one and all.


Interbank Rate 08.30 GMT

GBPUSD   1.3222

EURUSD   1.1338

EURGBP   0.8577

GBPEUR   1.1658

GBPAUD   1.8660

GBPCAD   1.7635

GBPZAR   19.1951

GBPHKD   10.2510

USDJPY   111.59

USDZAR   14.5090

EURJPY   126.54

EURHKD   8.7931

GBPJPY   147.57

AUDUSD   0.7083

EURCHF   1.1345

USDCAD   1.3341

USDCHF   1.0006


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