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Writer's pictureMike Paterson

Risk appetite off the menu as equities retreat further

Thursday 11 October 2018

Equity markets have staged another wobble and Trump has voiced his concern about US rate hikes yet again all helping to send the Greenback generally lower too as traders turn to safe-haven currencies once again.

GBPUSD has found some Brexit love again and been up to 1.3245 amid all the noise elsewhere but has been tempered by GBPJPY and GBPCHF selling while EURGBP has found support again into 0.8724 which has added to the GBP supply. Sell interest poised at 1.3220 now then larger into 1.3250 again with 1.3280-00 still a very good line in the sand. Immediate demand now around the 1.3180 area then more at 1.3150, 1.3130 and larger at 1.3100. I remain a GBP rally seller for the moment but with a little caution still and happy to buy back in the dips.

EURGBP has bids/support at 0.8720 still then more into 0.8700 and 0.8680. Sellers poised now around 0.8750 again then 0.8780, 0.8800 and 0.8830. Yesterday's UK data,inc GDP, was inconclusive with BOE's Haldane adding little of note in his speech either so the GBP jury remains out.

EURUSD has finally held above 1.1500 and now taken out the 1.1530 resistance to post highs of 1.1573 amid the general US$ selling and renewed Euro demand.Immediate bids/support now at 1.1520, 1.1500, then 1.1475-80 and still between 1.1450-60 with sellers still poised between 1.1580-1.1600 as I warned yesterday. Large option contracts rolling off at 1.1500 and 1.1600 today should provide the range limits on the wide.

USDJPY is still finding rally-sellers on the risk-off Yen demand/USD supply tones and has fallen further to 111.98 lows after yesterday's failed/option-led attempt to hold above 113.00. Bids/demand now around 112.0,111.85 and 111.60 with sell interest at 112.50 then 112.80-00. I remain a rally seller. USDCHF has also also been in retreat on the CHF safe-haven demand and broken down through 0.9880-0.9900 support to post lows of 0.9856. EURCHF demand still around 1.1380-1.1400 though and helping to underpin both pairs with the SNB never too far away.Sellers at 1.1430,1.1450 still then larger between 1.1480-1.1500. USDCHF bids still at 0.9860 and 0.9830 with sell interest around 0.9900, 0.9930 and 0.9960. I remain a dip buyer on both.

AUDUSD still remains undermined by concerns over the US-China trade spat and Aussie $ sellers prevailed agaion yesterday above 0.7100 to send the pair back down to 0.7042. Immediate demand now at 0.7045-50,0.7030 and 0.7000.Sellers poised around 0.7100 then 0.7130 and 0.7150 again. USDCAD is bucking the Greenback trend for the moment to rally and post highs of 1.3070 as falling oil prices and USMCA uncertainty combine to weaken the Canadian $.Sell interest at 1.3080 then 1.3100 with buyers around 1.3020 and 1.3000 and 1.2980.

Fickle Forex markets ever prevailing so get your orders in to take full advantage of these moves.

Have a good day out there one and all.

Twitter: @MSPFX and @MikePatersonFX

Interbank Rate 09.25 BST

GBPUSD 1.3188

EURUSD 1.1543

EURGBP 0.8752

GBPEUR 1.1423

USDJPY 112.34

USDCAD 1.3046

USDCHF 0.9887

GBPAUD 1.8605

GBPCAD 1.7204

GBPCHF 1.3039

GBPZAR 19.3400

GBPHKD 10.2246

EURHKD 8.9509

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