Thursday 17 September 2020
In a global economy, and indeed the world at large, that is in such a mess it's ever more apparent to me that Central Banks have less and less ammunition left.
Lsst night the US Federal Reserve did about as much ss they could but still ultimately failed to please the doves as rhetoric once again outweighed action. Today sees the turn of the Bank of England to talk the talk but not walk any particular walk at 11.00 GMT. We shall always expect the unexpectd but I can't really see much beyond a cautious/ready-to-act-if- needed rhetoric again.
GBPUSD continued its post-FOMC retreat to test 1.2900 in Asia on the USD demand but since bounced to 1.2960.EURGBP duly found support at 0.9080 also with some general GBP caution ahead of today's BOE announcement and now posting 0.9125. GBPJPY is still ranging 135.50-136.50 amid the variable risk and USD 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 even if BOE is more dovish than expected. Markets still in a state of flux overall.
USDJPY remains on the back foot but finding some support at 104.70 for the moment.EURUSD has had a another dip and posted fresh recent lows of 1.1738 amid some general EUR selling still but dip demand once again helping to test 1.1800 as I type where we also have large option expiries today. USDCHF held those 0.9050 bids once more and rallied to 0.9140 as EURUSD fell in Asia but rallies tempered by some EURCHF supply as well as the EURUSD bounce back through 1.1800.
AUDUSD failed around 0.7350 again and fell prior to/post FOMC but demand at 0.7260 and now testing 0.7300 offers again on some general USD supply this morning. USDCAD based at 1.3130 but since failed at 1.3250 as we continue to range.
Markets are ever-fickle so don't forget to contact me if there's areas that you might need some further help with.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.40 BST
GBPUSD 1.2944
EURUSD 1.1784
EURGBP 0.9103
GBPEUR 1.0982
GBPAUD 1.7762
GBPCAD 1.7107
GBPJPY 135.58
GBPZAR 21.1824
GBPHKD 10.0354
USDJPY 104.78
USDZAR 16.3578
EURJPY 123.47
EURCHF 1.0749
EURHKD 9.1381
AUDUSD 0.7285
USDCAD 1.3216
USDCHF 0.9121
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