Thursday 15 October 2020
Yesterday saw a real rollercoaster ride for GBP pairs and the official extension of today's Brexit talk deadline gave the Pound a big lift back up from the morning lows.
In the US the election and economic stimulus package continue to grab headlines as does COVID and markets remain rightly cautious to the outcome of both.
Sad news given to me this morning from a dear friend that his Father-In-Law yesterday passed due to COVID serves as a timely reminder, if any needed, that this awful virus is real and cutting into the very fabric of our society and families. Sincere condolences and thoughts go out to him and family at this sad time.
GBPUSD held 1.2860 yesterday and rebounded on the positive Brexit news to post 1.3065 but once again failed at that level and since been down to test support now at 1.2980-85 where we also have large expiries today. Re-sells duly made on the way up and a couple of losses taken but more re-sells into the highs have proved that patience can indeed be a virtue.Some pips already banked on this latest retreat while remaining core short but FX markets remain fickle as ever and I hope my ongoing steer has helped. EURGBP duly found support at 0.9000-10 this time around after another failure at 0.9120-25 and now back to 0.9030 as GBPUSD retreats again.GBPJPY made a good recovery on the GBP demand but tempered above 137.20 by softer risk and USDJPY supply.
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 with markets and risk sentiment still in a state of uncertainty overall.Brexit remains the very big elephant in the room.
USDJPY failed into 105.60 again but equally holding 105.00 now more amid the softer risk tones. Large option expiries again in play today.EURJPY has seen a decent retreat from 123.80 with core pairs and risk both soggy and now testing support around 123.30. EURUSD rally sellers prevailing again after holding 1.1770 on yesterday's rally per my tweet but finding decent support into 1.1720-25 again as I type where we've based for the last week.USDCHF found support this time at 0.9120 with SNB casting its shadow still as EURUSD capped but sellers still poised above 0.9160 with EURCHF still looking a little soggy for the moment.
AUDUSD has now broken down through 0.7100 and testing 0.7080 as I type on the softer risk/AUDJPY supply while USDCAD still remains tightly bound amid the variable/fickle risk/USD/oil tones but now up through 1.3150 with CADJPY selling notable again after holding 1.3120.
Markets are ever-fickle so don't forget to contact me if there's areas of trading these markets 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: 08.43 BST
GBPUSD 1.3001
EURUSD 1.1736
EURGBP 0.9025
GBPEUR 1.1078
GBPAUD 1.8303
GBPCAD 1.7116
GBPJPY 136.77
GBPZAR 21.6242
GBPHKD 10.0778
USDJPY 105.20
USDZAR 16.6811
EURJPY 123.48
EURCHF 1.0723
EURHKD 9.0970
AUDUSD 0.7103
USDCAD 1.3163
USDCHF 0.9135
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