• It's still looking fragile out there as equities slump again

    It's been another soggy 24 hours generally for the US Dollar but with tech stocks slumping and triggering falls in others we've also seen a move into risk-off sentiment and safe-haven plays.

    GBPUSD has continued to range trade with the no-confidence vote on PM May yet to materialize but the DUP last night abstained on a vote for the government's Budget measures to provide a timely reminder on her fragile position still. The equity risk-off wobble has also seen the usual GBPJPY and GBPCHF selling and that's helped cap rallies at 1.2882 a couple of times albeit with support around 1.2800 after a quick dip to 1.2796.Immediate offers at 1.2860 then still around 1.2880-85, 1.2900, 1.2920 and 1.2950 then larger around 1.2980-00.Bids/demand building again at 1.2820, 1.2800 and 1.2780 with more buyers/support at 1.2750, 1.2720 then larger at 1.2700 still.

    I remain GBP bearish overall and happy to jump on rallies then buy back in the dips while remaining core short, a strategy that continues to work well. Today's immediate focus (Brexit news-bombs notwithstanding ofc) is the appearance of BOE's Carney & Co in front of the Treasury Select Committee at 10.00 GMT to explain the November Inflation Report. We can expect a good deal of Brexit in the mix too but, as always, the risk will depend on the quality of the questioning and how far Carney & Co can duck out the way.

    EURGBP rallied further to post 0.8932 (GBPEUR lows of 1.1195) but has drifted back again to 0.8890 before settling in a 0.8900-25 range this morning. Buyers poised between 0.8890-00 still then 0.8880, 0.8850, 0.8830 and 0.8800 still with sellers now at 0.8925-30 and 0.8950 still.More lined up between 0.8980-00.

    EURUSD remains underpinned helped now by the softer USD$ sentiment and we've now been up to 1.1472 before falling back on the EURJPY and EURCHF supply.Immediate bids/support now at 1.1420, then 1.1400, 1.1380,1.1350 1.1320 and 1.1300 still, with sellers at 1.1450, then 1.1475-80 and larger at 1.1500 still.

    USDJPY has had yet another wobble lower to 112.31 on the softer USD tones and the risk-off Yen demand with equities tumbling from the post-Fed Friday comment rallies.Immediate sell interest now at 112.50, 112.65 112.80 and 113.00 with bids at 112.20, then larger at 112.00, 111.80 and 111.50-60. I remain a rally seller buying back in the dips. The net short GBPJPY position at good levels continues to work well.

    USDCHF has also fallen further to test 0.9900 with the Swiss Franc finding demand again on the risk-off tones and EURCHF falling again with the SNB seemingly fine watching for the moment and not getting involved but they can never be ruled out the of mix. EURCHF bids/support now around 1.1330, 1.1300 and 1.1280 with sellers poised around 1.1380, 1.1400 then 1.1420 and 1.1450 still. USDCHF bids now at 0.9900, then 0.9880 and 0.9860 with sellers around 0.9950 then 0.9980 and 1.0000. I'm happy to trade both sides of the price action at the moment.

    AUDUSD has failed above 0.7320 and fallen back through 0.7300 to post lows of 0.7268 with US-China trade concerns back in the mix as well as some AUDJPY selling. Decent bids/support still at 0.7250 then 0.7230 and 0.7200 still with sellers lurking around 0.7300 then 0.7320 and 0.7350. USDCAD continues to trade tightly amid the mix of softer USD/softer oil prices. Bids now at 1.3150 again then 1.3120-30 and 1.3100 with sellers poised around 1.3180, 1.3200 and 1.3230 still.

    Fickle Forex markets ever prevailing so get your orders in to take full advantage of these moves.

    Have a good week out there one and all.

    Twitter: @MSPFX and @MikePatersonFX

    Interbank Rate 08.25 GMT

    GBPUSD 1.2857

    EURUSD 1.1448

    EURGBP 0.8903

    GBPEUR 1.1231

    USDJPY 112.40

    USDCAD 1.3164

    USDCHF 0.9920

    GBPAUD 1.7633

    GBPCAD 1.6926

    GBPCHF 1.2755

    GBPHKD 9.9680

    EURHKD 8.8755

    0 Comments

social_rss_box_orange
official partner advert

Proud supporter of

tel
emailsymbol

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

Email : info@mspfx.co.uk

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.

Euros-1024x683
003-paradise-island-x

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