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Writer's pictureMike Paterson

Softer Greenback tones again as bond yields retreat

Wednesday 9 June 2021

Yesterday saw another up and down and up and down day in Forex with the net result being softer US Dollar tones amid lower US Treasury yields as we greet another day. ECB tomorrow a focus and a noticeable amount of EUR options Puts today. BOC interest rate policy/decision today also in the mix.


Jury on the Greenback still out but risk sentiment remains fragile/variable but a little firmer this morning with Bitcoin steadying a little but equities off their highs again.


GBPUSD: A good hold of 1.4120 yesterday and now testing 1.4180-00 again amid the softer USD tones helped by EURGBP retreating again and GBPJPY demand. EURGBP: Capped above 0.8610 again and still ranging with the 0.8580-85 support key.GBPJPY: 154.60 holding again then 154.80 providing a base and now posting 155.20 amid some firmer risk tones.


I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats.


EURUSD: A good hold of 1.2170 yesterday and now looking at 1.2200 again amid underpinned tones with lots of options Puts today. USDJPY: Holding 109.30 in the latest retreat from 109.50 yesterday with those options capping but now supported by some risk-on JPY selling but tightly bound still. EURJPY: 133.20 now providing a base with core pairs both underpinned too. Sellers poised at 133.50-60 still.USDCHF: Holding 0.8950 this time in its latest retreat after failing into 0.8980 as EURUSD found support and rallies still tempered by EURCHF supply but with the SNB ever vigilant/helpful. EURCHF: Capped into 1.0930 now after breaking down through but holding 1.0910 for the moment with SNB shadow ever present


AUDUSD: A decent cap at 0.7755-60 with some options once again at 0.7750 helping to add supply per my tweets but demand notable still at 0.7720-30. More options at 0.7750 today but Puts this time.USDCAD: Holding another pivot area at 1.2080 this time but failing at 1.2120 as we continue to range amid variable USD and oil tones. CADJPY demand now helping to cap amid firmer risk tones.

Offers: 1.2100-05, 1.2125-30, 1.2150, 1.2175-80, 1.2200,1.2225-30, 1.2250


Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good week everyone.


Interbank rates: 08.50 BST

GBPUSD 1.4175

EURUSD 1.2183

EURGBP 0.8593

GBPEUR 1.1637

GBPAUD 1.8300

GBPCAD 1.7148

GBPJPY 155.14

GBPZAR 19.1936

GBPHKD 10.9899

USDJPY 109.41

USDZAR 13.5414

EURJPY 133.32

EURCHF 1.0920

EURHKD 9.4439

AUDUSD 0.7748

USDCAD 1.2089

USDCHF 0.8962



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