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Writer's pictureMike Paterson

Risk-off reality check again

24th June 2020

I've been warning of fragile and fickle markets for ages now and today sees another reality check as equities turn lower to provide some risk-off sentiment again after yesterday's USD selling


GBPUSD broke up through 1.2525 to test 1.2550 but falling below 1.2480 as I type helped by some GBPJPY supply again and some pips from re-sells banked as as per my tweet.EURGBP failed into 0.9080 and some more pips duly taken but suppport around 0.9020 still as we approach month-end.GBPJPY tested 134.00 again amid some better risk but capped again as USDJPY came down through 106.50 to test 106.00 and fell to 132.60.


I stay poised to sell GBP rallies overall and buy back in the dips as ever but patience continues to be a virtue and entry level key as always. I still expect to see some dip demand though.


USDJPY has been down to look at 106.00 amid yesterday's USD sell-off but finding dip demand again although still failing above 106.60 since amid the softer risk plays.EURJPY is finding support/demand at 120.20 but failing above 121.00 on the bounces again. EURUSD enjoyed the USD sell-off to test 1.1350 again but now down through 1.1300 on the softer risk/firmer USD this morning. USDCHF has broken down through 0.9440 but more bids at 0.9420 holding the drop as EURCHF holds in there still with the SNB ever vigilant.


AUDUSD enjoyed the USD sell-off to break up through 0.6970 again but since back down on the risk-off retreat to test 0.6900 as RBNZ left rates on hold but cautious tones had an A$ knock-on effect too. Gold holding yesterday's 8-year highs not helping AUD atm.USDCAD has proved more resistant to the softer Greenback amid talk of aluminium tariffs to be imposed by the US after a retreat to test 1.3480 is enjoying a bounce to 1.3560 helped also by some softer oil tones.


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   1.2487

EURUSD   1.1296

EURGBP   0.9044

GBPEUR   1.1055

GBPAUD   1.8047

GBPCAD   1.6938

GBPJPY   133.16

GBPZAR   21.6021

GBPHKD   9.6812

USDJPY   106.61

USDZAR   17.2781

EURJPY   120.45

EURCHF   1.0681

EURHKD   8.7573

AUDUSD   0.6921

USDCAD   1.3562

USDCHF   0.9452


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