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Writer's pictureMike Paterson

USD demand still notable

Wednesday 24 April 2019

Firstly apologies for late delivery of my update but I've been out at a business breakfast meeting. It's a mixed bag out there at the moment but we're seeing some ongoing US$ buying overall as a theme.


GBPUSD failed into 1.3020-30 again and has fallen to 1.2915. Cross party Brexit talks have shown little evidence of any progress being made as per printed programme and with May still fighting her own party too the market is happy to sell the Pound again. EURGBP has been tightly bound but remains underpinned with month-end demand on the horizon again.


 I remain GBP bearish overall and continue to rally-sell as my preferred strategy amid the Brexit debacles and general USD demand currently prevailing. Plenty more noise to come in the weeks ahead and the algos will continue to feed off the headlines.


EURUSD has fallen through 1.1200 a few times, notably post option expiry time yesterday after large interest rolled off, but held the next support at 1.1180 but similarly can't get back above 1.1230. USDJPY still looks underpinned into 111.65 which has held yet again but rally sellers equally poised around 112.00 as we've been seeing lately and again yesterday.USDCHF remains underpinned but fallen back as EURCHF found sellers above 1.1450 amid the general EURUSD retreat but still expect dip support with the SNB ever-watchful.


AUDUSD has broken down through 0.7080 support and retreated further through the next lines at 0.7050 and 0.7030 as CPI missed expectations and added to RBA rate cut hype.USDCAD has finally broken back up through 1.3400 to post 1.3462 on the firmer USD/softer oil combo.


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 09.40 BST

GBPUSD   1.2931

EURUSD   1.1215

EURGBP   0.8672

GBPEUR   1.1530

GBPAUD   1.8358

GBPCAD   1.7391

GBPZAR   18.5137

GBPHKD   10.0246

USDJPY   111.84

USDZAR   14.3218

EURJPY   125.43

GBPJPY   144.62

AUDUSD   0.7044

EURCHF   1.1415

EURHKD   8.6944

USDCAD   1.3449

USDCHF   1.0178


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