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Writer's pictureMike Paterson

Pound ranging in a roller coaster ride

Friday 18 September 2020

Yesterday saw the turn of the BOE to talk the talk and it transpired they've been talking about negative interest rates again. The news gave the Pound a knock lower but then some positive Brexit trade deal vibes from EDL along with some reportedly large futures interest provided a sharp rally only to fade again before firming up again this morning. Keep up at the back !!


Softer USD generally since though as we head into the week-end along with some fragile risk sentiment again.


GBPUSD has traded 1.2860-1.3000 in that ever-fickle volatility while EURGBP found support at 0.9080 again on the sharp GBP spike having capped at 0.9170 but has since been back to look at 0.9150-60 before capping again amid the variable GBP sentiment. GBPJPY tumbled to test 134.50 before rapidly recovering to 136.00 amid the GBP rollercoaster ride and now finding support at 135.50.


I stay poised to sell GBP rallies as my preferred side and buy those short positions back in the dips as ever. Patience continues to be a virtue and entry level key as always. I still see dip demand though with markets still in a state of flux overall.


USDJPY remains on the back foot but finding some support at 104.50 now as we range 104.50-00. Rinse n repeat for the moment.EURJPY based at 123.30 on its retreat yesterday but since capped at 124.30 and currently falling again as I type as core pairs find rally sellers amid fragile risk. EURUSD duly found support at 1.1780 and since made steady gains to 1.1865 amid the softer Greenback tones. USDCHF capped at 0.9130 as EURUSD rallied but since holding 0.975 on the retreat amid some tight ranging EURCHF.


AUDUSD found support at 0.7280 but capping at 0.7330 since but underpinned still for the moment amid the softer USD tones and very large option interest today at 0.7300. USDCAD capped at 1.3250 but since based at 1.3130 again as we continue to range.


Markets are ever-fickle so don't forget to contact me if there's areas of trading them 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. Have a great week-end.


Interbank rates:  08.35 BST

GBPUSD   1.2988

EURUSD   1.1853

EURGBP   0.9127

GBPEUR   1.0953

GBPAUD   1.7743

GBPCAD   1.7084

GBPJPY   135.77

GBPZAR   20.9358

GBPHKD   10.0696

USDJPY   104.59

USDZAR   16.1240

EURJPY   123.97

EURCHF   1.0764

EURHKD   9.1926

AUDUSD   0.7317

USDCAD   1.3158

USDCHF   0.9081


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