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Writer's pictureMike Paterson

US Dollar wobbles while Pound finds support

Thursday 18 July 2019

Yesterday saw renewed USD supply on reports that US-China trade talks has stalled over the Huawei issue adding fuel to some retreat in equities and bond yields. That sentiment has continued this morning but the jury remains out.


GBPUSD duly failed at the 1.2380 support and as the day progressed we saw some good two-way business and this morning we've spiked to 1.2473 from 1.2445 on Barnier comments re potential talks on Brexit backstop issue.

EURGBP also duly failed at 0.9050 and this morning fell to 0.9012 on the general GBP spike. GBPJPY sellers remain poised still as we rally from 133.80 after yesterday's risk-off fall to post 134.39 helped by USDJPY finding support at 107.60.


I remain GBP bearish overall still and will continue to rally-sell as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout but happy to buy back in the dips as always.


EURUSD has found expected dip support again around 1.1200 but similarly still finding rally sellers too as we continue to range tightly amid much cross-currency play. Bids building at 1.1215-25 (decent expiry interest) then 1.1200 still ( more expiries at 1.1190) then the previous line in the sand at 1.1180 with more at 1.1265 then larger again at 1.1280-85 still then 1.1300, 1.13150-20 and 1.1350. Large expiry interest today at 1.1235 might help contain range. I prefer to sell rallies still overall as we continue to broadly range whilst respecting the inherent dip demand.


USDJPY fell again on the general supply and fragile risk and we've posted lows of 107.61.Bids building at  107.50-60 then 107.30 and 107.00 still. USDCHF has also seen the usual dip demand after failing above 0.9900 but still capped by EURCHF supply into 1.1100.


AUDUSD remains tightly bound having had a good expiry battle yesterday at 0.7000 with that large interest I mentioned. USDCAD also remains tightly bound.


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


Have a good day out there one and all.


Interbank Rate 08.08 BST

GBPUSD   1.2440

EURUSD   1.1236

EURGBP   0.9020

GBPEUR   1.1084

GBPAUD   1.7708

GBPCAD   1.6259

GBPJPY   134.19

GBPZAR   17.4411

GBPHKD   9.6447

USDJPY   107.74

USDZAR   13.9893

EURJPY   121.07

EURCHF   1.1075

EURHKD   8.7007

AUDUSD   0.7032

USDCAD   1.3056

USDCHF   0.9857


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