Thursday 30 January 2020
Last night the US Federal Reserve kept interest rates on hold and remained cautious as expected but it's the Coronavirus growth that continues to grab most of the headlines with risk sentiment fragile still.
Today we have the keenly anticipated interest rate decision from the BOE at 12.00 GMT. Will they cut ? Should they hold ? How much of either decision is factored in ? I'll send a few thoughts prior.
GBPUSD meanwhile has understandably traded tightly amid the conjecture but still holding 1.3000-1.3030. EURGBP held 0.8450 and rallied to 0.8472 on the month-end Bundesbank demand but remain tightly bound ahead of the BOE too.GBPJPY remains on the back foot overall and now breaking down through that decent demand/support around 141.50 as I type amid the further risk-off sentiment.
I stay poised to sell GBP rallies overall and buy back in the dips as ever but continue to see some good two-way business as we continue in these tight ranges and with the BOE looming large. The UK leaving the EU tomorrow continues to be one of the great unknowns as we look further down the line.
EURUSD remains on on the back foot but still tightly bound with large option expiries today containing moves.
USDJPY also remains under pressure on the fragile risk overall still but holding 108.75-80 again for the moment with those bids still providing good support. EURJPY is still holding 119.80 but rally sellers remain ready too amid the softer risk plays and general sogginess in core pairs atm but both still with dip demand currently at key levels and those EURUSD options in play too. USDCHF has duly found more CHF buyers and capped above 0.9760 amid the softer risk sentiment but it seems to me that the SNB defence remain poised.
AUDUSD has retreated again amid the Coronavirus growth and some on-going dovish expectations from the RBA meeting next week. USDCAD has rallied again on the risk-off softer oil/CADJPY supply double whammy and now broken up through 1.3200 after holding 1.3175-80.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Don't forget that I offer 1-2-1 mentoring if there's areas of trading these tight ranges, or how to make best use of the order boards and expiries, that you might need some further help with.
Have a good day out there one and all.
Interbank rates: 07.15 GMT
GBPUSD 1.3001
EURUSD 1.1008
EURGBP 0.8467
GBPEUR 1.1809
GBPAUD 1.9324
GBPCAD 1.7180
GBPJPY 141.51
GBPZAR 19.1020
GBPHKD 10.0797
USDJPY 108.84
USDZAR 14.7044
EURJPY 119.82
EURCHF 1.0702
EURHKD 8.5356
AUDUSD 0.6727
USDCAD 1.3214
USDCHF 0.9721
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