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Writer's pictureMike Paterson

US Dollar demand still in play

Wednesday 18 March 2020

The UK and others continue to lock-down their communities and therefore economies, despite huge support measures and this Coronavirus-led black swan moment sadly continues at full pace. JPY and CHF continue to be safe-havens and limiting USD gains but it's the global need for the Greenback that is still notable as US Treasury yields continue to fall. Oil and equities still very much on the backfoot.


As I said yesterday please feel free to contact me on any of the current issues and impact on FX markets in these very difficult times. I would also like to hear from you to let me know whether you are still trading through all this turmoil or reducing your activity for whatever reasons. How may I help further in these difficult times?


GBPUSD has been down further to test 1.2000 ( breaking now as I type) with GBPJPY and GBPCHF supply helping to push it down along with the general USD demand while EURGBP seems set in 0.9060-0.9160 range for the moment (GBPEUR 1.0917-1.1037). GBPJPY has fallen further to test 128.60 before bouncing as USDJPY enjoys the current dip demand but rally-sellers poised as ever.


I stay poised to sell GBP rallies and buy back in the dips as ever.


USDJPY is still torn between USD and JPY demand and with plenty of option interest to keep it contained further within that range. EURJPY has been down to 117.30 as risk sentiment fades again.EURUSD has dropped further to test 1.0950 befiore boucing to 1.1040 only to run into rally sellers again on the USD demand/risk-off double whammy that we're seeing across most core pairs. The ECB keep saying they have more tools in the box but I still see limited room to move/help.USDCHF has posted fresh recent highs of 0.9648 amid the same pattern of EURUSD falling and EURCHF holding that evident SNB line in the sand at 1.0540 that I've been highlighting.


AUDUSD has tumbled further to post 0.5921 amid the general USD demand and AUDJPY supply while USDCAD has surged further on the lower oil/USD demand/risk-off triple whammy still. The 1.3960 support line in the sand I mentioned yesterday now seems a long way away.


Fickle Forex markets ever prevailing so be ready to jump on moves with your orders as always. Caution advised as ever if you're not sure.


Lots going on right now, and the foreseeable future, so don't forget that I offer 1-2-1 mentoring if there's areas of trading these volatile markets or how to make best use of the order boards and expiries, that you might need some further help with.


Let's continue to be careful out there as ever. Staying safe must be our main priority.


Interbank rates: 08.25 GMT

GBPUSD   1.2052

EURUSD   1.0980

EURGBP   0.9105

GBPEUR   1.0979

GBPAUD   2.0275

GBPCAD   1.7201

GBPJPY   129.50

GBPZAR   20.2551

GBPHKD   9.3424

USDJPY   107.41

USDZAR   16.8640

EURJPY   118.00

EURCHF   1.0550

EURHKD   8.5093

AUDUSD   0.5945

USDCAD   1.4265

USDCHF   0.9608


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