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Writer's pictureMike Paterson

US Dollar demand returns but the jury is still out

Tuesday 27 April 2021

After being on the back foot for a while we've seen some Greenback buying in the past 24 hours but we're still ranging overall as markets wait on the FOMC and Biden speech tomorrow.


Ironically we've seen the USD demand since Citi put out their preliminary month-end USD flow signal that points to a greater than average USD selling need this month. Lots of water to flow under the EOM bridge with 4 days to go so keep the information in mind as we watch what plays out meanwhile.


GBPUSD: Finding a cap at the 1.3925-30 offers I warned about here and on Twitter and now testing support st 1.3850-60.EURGBP: Holding 0.8680 after the repeated fails above 0.8700 and delicately poised still.GBPJPY: A good base at 149.80 amid the better risk tones and core pair demand but sellers at 150.50 still poised.


I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats. Caution advised still as equally a case for buying dips still atm.


EURUSD: A good hold of 1.2060 since we failed aobve 1.2100 but under threat again as I type. USDJPY: Staged a decent rally after holding 107.60 and now taken out the recent 108.20 cap but sellers remain poised.EURJPY: 130.20 providing a decent line of support now but rally sellers now poised above 130.80 with core pairs being capped for the moment.USDCHF: Finding support at 0.9140 now as EURUSD retreats and EURCHF remains underpinned with the SNB ever watchful and ready to help. EURCHF: 1.1030 now providing a base helped by the SNB shadow and now up through 1.1050 but sellers poised.


AUDUSD: Now finding support at 0.7760 but failing above 0.7800. Some option interest potentially in play today.

USDCAD: 1.2380 holding now after capping at 1.2460 and retreating amid the firmer oil tones and CADJPY demand.


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 1.3884

EURUSD 1.2068

EURGBP 0.8692

GBPEUR 1.1503

GBPAUD 1.7838

GBPCAD 1.7226

GBPJPY 150.41

GBPZAR 19.8748

GBPHKD 10.7573

USDJPY 108.30

USDZAR 14.3402

EURJPY 130.75

EURCHF 1.1054

EURHKD 9.3517

AUDUSD 0.7783

USDCAD 1.2405

USDCHF 0.9157



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