Tuesday 31 December 2019
Happy New Years Eve everyone and I trust you've had a peaceful holiday period however you spent it.
Notable decline in the Greenback since I last posted as year-end flows kick in and give markets something to think about as we head into 2020. Gold higher and equities softer too but all still very thin if you're trading so caution advised with Interbank desks not back in full swing until Monday.
GBPUSD held 1.2900 and has seen a decent rally to test 1.3150-60 offers/resistance amid the USD decline.EURGBP month-end BUBA demand has helped to underpin amid the thin Xmas liquidity but stronger GBPUSD buying has helped temper the rallies above 0.8560. GBPJPY has rallied to test 143.00 as USDJPY initially lagged but since played a little catch-up and we've been down to 142.40.
I stay poised to sell GBP rallies while respecting the current dip demand still and we should continue to see some good two-way business.
EURUSD has also rallied well to post highs of 1.1215 and remains underpinned after finding support around 1.1100 while USDJPY finally broken lower on the softer USD and risk sentiment.USDCHF has broken lower too as EURUSD rallies and with EURCHF still finding a few sellers amid the general CHF demand with the SNB being ever vigilant but seemingly not too bothered atm.
AUDUSD has enjoyed the year-end demand that I mentioned before and now helped by the softer year-end USD to post 0.7013 while USDCAD has fallen to 1.3042 amid the firmer oil price and softer USD sentiment.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
I will post my next update on Thursday 2nd Jan.
Have a good day/New Year's Eve out there one and all and I wish you a successful 2020.
Interbank rates: 08.25 GMT
GBPUSD 1.3125
EURUSD 1.1208
EURGBP 0.8538
GBPEUR 1.1709
GBPAUD 1.8730
GBPCAD 1.7119
GBPJPY 142.61
GBPZAR 18.4187
GBPHKD 10.1758
USDJPY 108.67
USDZAR 14.0198
EURJPY 121.82
EURCHF 1.0860
EURHKD 8.6906
AUDUSD 0.7007
USDCAD 1.3047
USDCHF 0.9687
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