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Writer's pictureMike Paterson

Risk-off sentiment prevailing as equities tumble

Wednesday 26 February 2020

Amid all the Coronavirus concerns, on-going trade deal battles and global political instability we've been witnessing some serious falls in global equity markets lately and again now as European trading gets underway.Some decent moves in the Greenback again and all softer again now with USDJPY testing 110.00 and USDCHF falling to 0.9728. I've long warned about global fragility so I hope that steer has served you well.


GBPUSD finally broke above 1.3000 but found the resinstance at 1.3020 a step too far. EURGBP month-end demand helping to push GBPUSD lower too along with GBPJPY and GBPCHF supply. EURGBP has found the month-end support I've highlighted to post 0.8406 again (GBPEUR 1.1895) and remains underpinned further adding to pressure on GBP.GBPJPY failed above 143.60 and has fallen back sharply this morning amid all the risk off and selling on core pairs to test 142.75-80.


I stay poised to sell GBP rallies but still ranging overall.


USDJPY finally broke 110.30 and tested 110.00, reversing all of last week's rapid rise before rallying to post 110.58 only to fall again this morning. EURJPY tightly bound still as EURUSD finds some decent demand amid softer USD and EURGBP demand but with sellers still ever-ready.EURUSD duly held 1.0830 amid all that expiry congestion and with USDCHF tumbling has been pushed up to 1.0898 this morning as EURCHF holds 1.0600 again. USDCHF has now broken 0.9760 to post 0.9728 as EURUSD rallies with EURCHF still holding around 1.0600 and the SNB casting a shadow still.


AUDUSD has also broken decent support at 0.6580 amid the Coronavirus/risk-off supply and now posted fresh 11-year lows of 0.6570 while USDCAD broke above 1.3300 on the softer oil price/risk-off CADJPY selling again but failing to make much further progress tempered by the USD general supply.


Fickle Forex markets ever prevailing so be ready to jump on moves with your entry/exit levels and orders as always.


Have a good day out there one and all.


Interbank rates: 08.35 GMT

GBPUSD   1.2986

EURUSD   1.0881

EURGBP   0.8380

GBPEUR   1.1932

GBPAUD   1.9750

GBPCAD   1.7248

GBPJPY   143.07

GBPZAR   19.8011

GBPHKD   10.0680

USDJPY   110.25

USDZAR   15.3108

EURJPY   120.07

EURCHF   1.0602

EURHKD   8.4378

AUDUSD   0.6577

USDCAD   1.3294

USDCHF   0.9730


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