• Fed throws more into the mix but it's still very fragile out there

    There was already some risk appetite returning when I finished my report yesterday, as I warned, and a relatively quiet day was later given a kick by the US Federal Reserve announcing they will buy corporate bonds directly including newly issued debt. Cue a surge higher in equities and risk appetite which saw core pairs lifted in a rush.

    The Pound got a further lift on reports that the EU might compromise on the highly sensitive topic of fishing rights. That on top of some conciliatroy tones in the talks between Johnson and Von der Leyen.

    Since then though we've seen some risk-off sentiment return this morning amid N. Korea/S.Korea tensions, a India/China border incident,and ongoing concerns over a COVID-19 second wave. This morning's UK jobs/wages made ugly reading but to be expected in these current times.

    GBPUSD yesterday found itself supported above 1.2500, then once finally back up through 1.2550-60 didn't really look back and helped by the Fed/risk-on/Brexit positives we've seen 1.2688 before retreating this morning to 1.2615.EURGBP continued its retreat as GBPUSD found a bid yesterday and had a look below 0.8950 (GBPEUR up to 1.1183) before rallying again to test 0.8980 (1.1135).GBPJPY also continued its rally with core pairs both finding dip demand and then pushed higher on the Fed news to post 136.35 but since in retreat to test 135.30.

    I stay poised to sell GBP rallies overall and buy back in the dips as ever but patience continues to be a virtue and entry level key as always. I still expect to see some dip demand though given the recent rallies.

    USDJPY broke up above 107.50 on the better risk to post 107.64 before capping but demand/support building at 107.25-30 again. EURJPY failed above 122.00 but finding support demand at 121.40 on the current retreat. EURUSD initally capped around 1.1265 on those large expiries I highlighted but then enjoyed the happy-clappy train higher to burst up through 1.1300-20 but capping around 1.1350 this morning. USDCHF is holding 0.9480 on the better risk after yesterday's retreat from 0.9550 with every sign of the SNB drawing another line under it as EURCHF heads back above 1.0750 and EURUSD rallies too but some natural demand as well.

    AUDUSD has enjoyed the risk-on environment to test 0.6980 before retreating on the softer risk this morning and there's good two-way pips to be had still whatever your bias. USDCAD fell to look at 1.3520 on the better risk with CADJPY demand notable and reversing a few of the recent moves but failing into 1.3600 on the softer-risk rally this morning so far.

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

    Twitter: @MSPFX and @MikePatersonFX

    Interbank rates: 08.32 BST

    GBPUSD 1.2632

    EURUSD 1.1333

    EURGBP 0.8971

    GBPEUR 1.1146

    GBPAUD 1.8268

    GBPCAD 1.7139

    GBPJPY 135.59

    GBPZAR 21.5245

    GBPHKD 9.7936

    USDJPY 107.36

    USDZAR 17.0390

    EURJPY 121.64

    EURCHF 1.0751

    EURHKD 8.7866

    AUDUSD 0.6916

    USDCAD 1.3566

    USDCHF 0.9485


official partner advert

Proud supporter of


Call us today: +44 (0) 1732 700 383

Bringing You The Best Value Currency Deals

Raising the Standard in Foreign Currency Exchange & International Money Transfers

Office hours : Monday to Friday - 8am till 6pm

The MSP Update

Photo crop (passport)

Welcome to my blog

Daily market commentary from
Mike Paterson

The MSP Update is an essential tool for personal and business clients who want to be kept informed on a daily basis. If you would like to discuss your requirements then give us a call and talk to one our experienced team..

Call today +44 (0) 1732 700 383

Find out how much you could save today

Don’t let the banks or your existing foreign currency broker cash in with poor exchange rates and extortionate fees, Whether you are making a small or large, one-off or regular money transfer , MSP FX will offer the best rates for your individual foreign currency requirements and assist you in transacting at the most opportune moment possible given your timeframe. MSP Foreign Exchange Services offers complete security of funds by executing trades only through preferred FSA and HMRC regulated providers. For more information call us today and find out how MSP FX can help you.


You are viewing the text version of this site.

To view the full version please install the Adobe Flash Player and ensure your web browser has JavaScript enabled.

Need help? check the requirements page.

Get Flash Player