A look around the Forex grounds

by | August 30th, 2018, 11:14:28 | News

A quick brief on the FX markets

We’re in yet another consolidation phase but there’s still some movement.

  • EURUSD – 1.1720-1.1670 the range inside of the wider 1.1730-1.1650 one. The EU tariff story is giving a small lift but is being felt more in stocks. A prolonged hold below the big 1.1740 area would likely bring about a steeper drop but buyers may not throw in the towel that easily
  • GBPUSD – It’s not giving up on 1.30 is it? Dips are being taken with gusto as the support into 1.2980 holds up. Crack that and it might be a different story. 1.3050/60 is still the big level to break next
  • USDJPY – Back in snooze mode after the run up yesterday. It’s still very much in ‘follow’ rather than ‘lead’ mode and doesn’t look interested in breaking any real new ground. Look for 111.80-112.00 to mark the highs and 111.20/30, the lows.
  • EURGBP – We seem to have a bigger focus on what Buba might still have to do for their month-end dealings. There looks to have been nothing today, unless they’ve been drip feeding small clips in. The PA certainly doesn’t show any signs of anything lumpy. There’s differing opinions in the room about whether they’ve still got more to do or if we saw them in action on Tuesday. We’ll have top wait and see but they won;t be looking to offer anyone a free lunch.
  • AUDUSD – Stayed very tight 0.7300/15 yesterday and then broke, and has gone very tight again 0.7280/0.7300. Very annoying if you’re trying to go with a move either way.
  • USDCAD – Feels like it’s waiting for more NAFTA headlines and GDP data later. 1.2900 proving a solid base and it’s willing to roam higher on a whim
  • EM’s – Under pressure again today but as mentioned earlier, not quite bringing a reaction in the majors as we saw previously.

On the calendar, German CPI/HICP is at 12.00 GMT. If the regional’s are to be believed, we shouldn’t get much change on expectations. US PCE and CAD GDP data are the main data points at 12.30 GMT.

That about wraps it up.

Ryan Littlestone
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