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Writer's pictureMike Paterson

Pound rallies amid better risk sentiment

Wednesday 5 February 2020

I warned yesterday on Twitter of dip buyers building on GBP pairs and that has been the case since that early morning sell-off and now given a further boost by UK Services PMI data but sellers still poised.We've seen risk-on sentiment prevail again but it all remains very fragile/fickle.


GBPUSD has been up to 1.3070 on that better data but back down below 1.3050 now. EURGBP duly fell yesterday on some 0.8500 option interest I warned here and tweeted about and helped support GBPUSD too.GBPJPY has been up to 143.39 amid the GBP demand and better risk sentiment.


I stay poised to sell GBP rallies and buy back in the dips as ever.Still ranging overall. Rinse n repeat.


EURUSD remains tightly bound amid the cross currency plays and option expiries. Today we have decent interest between 1.1050-85. USDJPY has rallied well again on the better risk/USD demand and posted 109.72. Sellers poised  but underpinned again for the moment.EURJPY also underpinned to post 121.16 but also running into sellers.

USDCHF has found support at 0.9680 helped by EURCHF demand too amid the better risk.


AUDUSD has rallied well again helped by some AUDJPY demand to post 0.6774 while USDCAD has failed to hold above 1.3300 again with some CADJPY demand still helping to cap.


Fickle Forex markets ever prevailing so be ready to jump on moves 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: 09.50  GMT

GBPUSD   1.3058

EURUSD   1.1027

EURGBP   0.8445

GBPEUR   1.1838

GBPAUD   1.9282

GBPCAD   1.7321

GBPJPY   143.21

GBPZAR   19.2053

GBPHKD   10.1239

USDJPY   109.68

USDZAR   14.7074

EURJPY   120.95

EURCHF   1.0726

EURHKD   8.5520

AUDUSD   0.6770

USDCAD   1.3269

USDCHF   0.9727


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