• Risk-on sentiment prevailing again but still very fragile out there

    It's another happy-clappy love-fest for equities, oil et al and we're seeing some risk-on sentiment return with some USD supply notable too but it's all so fragile out there still.

    The US-China trade deal is still on said Trump and Kudlow after Navarro said emphatically not before then withdrawing his remarks and its been risk-on since the initial wobble. COVID-19 still casting a re-surgence threat but the algos aren't concerned for the time being.

    Some EU PMI data already out and better than expected, with UK manufacturing and the key Services (80+% contribution to GDP )reading out at 08.30 GMT with US PMI released later.

    GBPUSD has broken up through 1.2460 to post 1.2507 as I type after falling below 1.2440 on the initial Navarro trade deal comments.The risk-on GBPJPY rally helping to a bid under GBP generally with EURGBP also capping at 0.9060 where we had those large options rolling off yesterday as I warned here and on Twitter after my buy-backs into 1.2380 so I hope the steer helped. EURGBP has retreated to test the 0.9015-20 bids but holding so far as GBPUSD fails above 1.2500.

    GBPJPY has based around 132.30 bids and apart from a clawback from 133.60 on the initial Navarro comment has made steady gains to test 134.00 amid the better risk this morning putting a bid under core pairs again.

    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 if risk appetite continues. As I type we've now seen the UK Mftg and Services PMI data and, like the EU readings earlier, they've been better than expected and given GBP a little nudge higher but GBPUSD still failing to clear those key lines/offers between 1.2520-25 as per my tweet.

    USDJPY has been down to look at 106.75 again but finding dip demand on the better risk but still failing to clear through 107.20-25 while EURJPY found support/demand into 119.80 and rallied on the better risk appetite but failing above 121.00 on the bounce as I type. EURUSD is finding more support at the pivotal 1.1220 level helped by the better risk and PMI data but rallies failing above 1.1300 so far. USDCHF has now broken down through 0.9480 on the softer USD and EURUSD rally but holding 0.9440 so far where I reported bids yesterday as EURCHF holds in there with the SNB ever vigilant.

    AUDUSD still enjoying the AUDJPY risk-on demand to break up through 0.6900 again and test 0.6935 from 0.6860.USDCAD failed into 1.3600 and seen a decent retreat to test 1.3500 but enjoying a bounce on the Navarro initial comments amid softer oil and risk but reversing those gains as I type on the better risk/firmer oil/softer USD tones again . Keep up at the back!

    We know there's lots going on right now, and the foreseeable future, so don't forget to contact me if there's areas of trading these volatile markets or how to make best use of the order boards and expiries, that you might need some further help with.

    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: 08.43 BST

    GBPUSD 1.2485

    EURUSD 1.1292

    EURGBP 0.9041

    GBPEUR 1.1059

    GBPAUD 1.8031

    GBPCAD 1.6884

    GBPJPY 133.80

    GBPZAR 21.4982

    GBPHKD 9.6796

    USDJPY 107.12

    USDZAR 17.2252

    EURJPY 120.97

    EURCHF 1.0671

    EURHKD 8.7527

    AUDUSD 0.6924

    USDCAD 1.3521

    USDCHF 0.9449

    0 Comments

social_rss_box_orange
official partner advert

Proud supporter of

tel
emailsymbol

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.

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