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Writer's pictureMike Paterson

Wobbly risk sentiment still prevailing

Monday 24 May 2021

Risk sentiment remains fragile as the inflation/Central Bank reaction uncertainty continues and markets point toward the collapse and recovery of Bitcoin as another week gets underway. Forex pairs still incredibly tightly bound but some USD demand notable as I finish this report.


Jury on the Greenback still out therefore so ignore the noise and, as always in these fickle times, be careful with your trading. Pick your preferred entry/exit levels and don't be greedy or over-analyze. Patience and discipline are key too of course,as highglighted perfectly by those post-FOMC moves yesterday.


GBPUSD: Capped at 1.4220-25 again but equally holding 1.4100 in latest fall this morning.EURGBP: Still holding 0.8580 in the retreat but sellers remain poised as we continue to range. Dip demand helping to cap GBPUSD.

GBPJPY: Underpinned at 153.75-80 atm but sell interest at 154.30-50 also still amid the fragile risk sentiment.


I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats.


EURUSD: A good hold of 1.2160 this time amid the general EUR demand and some decent option Put interest but sellers still poised as we continue to range. USDJPY: Still holding 108.60 but on the rise as I type amid some general USD demand. EURJPY: 132.60 still a decent base after sellers now at 133.00 have helped cap amid the softer risk tones.

USDCHF: 0.8960-65 still holding as EURUSD retreats again but rallies tempered by EURCHF finding rally sellers again. SNB will be ever vigilant/helpful.EURCHF: Capped into 1.0980 this time as USDCHF fell and helped by some risk-off selling but some general EUR dip demand and SNB shadow keeping it underpinned.


AUDUSD: A good cap at 0.7780 again but holding 0.7700 again in the retreat Some option interest both sides of the current price again today.USDCAD: Held 1.2030 this time after a decent retreat again but still capping at 1.2100 on firmer oil prices with CADJPY impact still in play.


Wonderful to see Phil Mickelson win the US PGA. Just a shame I backed him for the Masters and not this one !


Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good week everyone.


Interbank rates: 08.45 BST

GBPUSD 1.4168

EURUSD 1.2196

EURGBP 0.8610

GBPEUR 1.1613

GBPAUD 1.8306

GBPCAD 1.7085

GBPJPY 154.10

GBPZAR 19.7742

GBPHKD 10.9783

USDJPY 108.76

USDZAR 13.9865

EURJPY 132.67

EURCHF 1.0948

EURHKD 9.4641

AUDUSD 0.7737

USDCAD 1.2059

USDCHF 0.8977



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