• Softer US Dollar after dovish Powell

    US Fed Chairman Powell's testimony to Congress yesterday (Part 2 today at 14.00GMT) saw him in dovish mode with concern over rising risks and persistent lower inflation and the Greenback duly got sold as markets rubber-stamp a July 30-31 meeting rate cut. Throw in the ongoing general global fragility/ongoing trade talk concerns et al and we remain in cautious mode though.

    GBPUSD had broken back up through the 1.2480-85 pivot only to halt into the 1.2500 sell interest before retreating but upon release of the testimony we saw a sharp rally to test 1.2520 before fading only to then rise again in Asia to post highs of 1.2541 so far.

    EURGBP continues to find dip demand with EURUSD also still better supported in the dips but has also failed to hold above 0.9000 for the moment while GBPJPY sellers remain poised still but equally seeing some decent dip demand now around 135.00 as USDJPY finds support at 107.80-85 again.

    The BOE publish their latest Financial Stability Report this morning with Carney addressing key points in a presser. Expect plenty of Brexit reference. We also have the last ECB meeting Minutes due at 11.30

    I remain GBP bearish overall still and will continue to rally-sell as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout but happy to buy back in the dips as always.

    EURUSD is still finding dip support helped now by softer USD sentiment but similarly finding rally sellers around 1.1280 so far.USDJPY has retreated once again amid the USD supply to test the decent demand I've been highlighting recently at 107.80-85 where we also have large option expiries today but fragile risk also continues to help cap rallies with Yen buyers still poised. USDCHF has also fallen post-Powell and continues to be capped by some general CHF demand/EURCHF supply and we we've seen a test of 0.9850.

    AUDUSD has had a decent rally amid the USD supply but heading into decent sell interest between 0.6980-00 while USDCAD failed again above 1.3140 amid the expected BOC no-change to rate and cautious tones/Powell dovish tones combo and has been in steady retreat since to test the 1.3050 bids yet again as I type.

    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.

    Come on England !!!!!!!!!!

    Twitter: @MSPFX and @MikePatersonFX

    Interbank Rate 08.10 BST

    GBPUSD 1.2529

    EURUSD 1.1269

    EURGBP 0.8994

    GBPEUR 1.1118

    GBPAUD 1.7970

    GBPCAD 1.6350

    GBPJPY 135.41

    GBPZAR 17.4712

    GBPHKD 9.7222

    USDJPY 108.05

    USDZAR 13.9345

    EURJPY 121.80

    EURCHF 1.1120

    EURHKD 8.7446

    AUDUSD 0.6973

    USDCAD 1.3050

    USDCHF 0.9868


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