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Writer's pictureMike Paterson

New week, same old story

Tuesday 20 August 2019

Fragile risk sentiment never far away and we've seen more of it this morning with Yen and CHF demand also capping the latest US Dollar rallies. All range trading though still and in these fickle markets we shouldn't get too carried away with any of it. Boris Johnson continues to help the GBP bears among us as Brexit becomes more and more of a mess.


GBPUSD has found itself under pressure again this morning amid more Brexit bs (deja vu eh?) and fallen from 1.2140 in Asia to test 1.2080 again after failing above 1.2150 yesterday too. EURGBP has been up to 0.9168 (GBPEUR down to 1.0907) but still struggling to make further headway with EURUSD also below 1.1080 again. GBPJPY held around 129.50  and has dropped back below 128.80-00 helped by some USDJPY risk-off supply again.


I remain GBP bearish overall and will continue to rally-sell as my preferred trading strategy amid all the uncertainty/indecision including Brexit/political fallout but happy to buy back in the dips as always.Rinse and repeat.No reason to change my view any time soon (if ever, lol).


EURUSD has fallen through the 1.1130 and 1.1100 support again before stalling at the stronger 1.1080 area while USDJPY has retreated on the softer risk sentiment but still tightly bound between 106.30-80. USDCHF remains range bound and underpinned but tempered above 0.9800 again by EURCHF finding rally sellers once more amid the latest EURUSD supply and risk-off plays. The SNB is always going to be vigilant and has been intervening in the past weeks as I've been warning.


AUDUSD remains tightly bound amid all the cross play/Gold moves with sellers around 0.6800 but buyers around 0.6750. USDCAD remains underpinned and above 1.3300 again helped this morning by some CADJPY selling to post fresh recent highs of 1.3332.


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


Have a good day out there one and all.


Interbank Rate 08.50 BST

GBPUSD   1.2090

EURGBP   0.9156

EURUSD   1.1073

GBPEUR   1.0921

GBPAUD   1.7838

GBPCAD   1.6117

GBPJPY   128.73

GBPZAR   18.6330

GBPHKD   9.3734

USDJPY   106.42

USDZAR   15.4185

EURJPY   117.85

EURCHF   1.0853

EURHKD   8.5829

AUDUSD   0.6781

USDCAD   1.3324

USDCHF   0.9798


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