FX update 9 October 2018

by | October 9th, 2018, 12:46:31 | News

A quick look at forex markets

  • EURUSD – Continues to trade offered but has been slow going. The 1.1460 support broke but the support net around 1.1440 and then 1.1430 caught the fall. We’re chained to the risk monitors of JPY and CHF today and so are following, not leading. European bond yield rising and stocks falling keeps sentiment soft. That might change if the US session brings a bit more to the dollar party. 1.1400/1.1390 is the nearest decent looking support while above 1.1460, 1.1490/1.1500 cones back into play
  • GBPUSD – Another sloth-like performance lower from 1.3100. Intraday support around 1.3020/30 eyed, ahead of 1.3000. Resistance is around 1.3060 but some of that might have stepped down to 1.3050. There’s a slight negative edge from Brexit comments today but nothing that we haven’t heard a thousand times. Brexit minister Raab is in parliament from around 2.30pm GMT. Unless he’s got big news about the latest Irish border plans, this is likely to be a dud and a repeat of comments he’s made pretty much daily. Still, expect the unexpected
  • USDJPY – Still looking a bit sorry for itself and feeble attempts to climb higher have met good selling interest. 113.20/25 resistance gave out briefly but we failed to test the larger resistance (from broken support) around 113.50. Get above there and 113.60 and buyers may have thoughts about 114.00 again. Holding 113.00 looks to be the key level now as another move below could see it push lower
  • USDCAD – Hovering around 1.30 again, and perhaps eyeing a push above yesterday’s highs. If it does, 1.3050 & 1.3075 comes next, Support will need to build a stronger property at 1.30 if we do move above. Fail to do so and 1.2980/85, 65/70 & 50 are the other support levels
  • AUDUSD – 0.7040 remains the big support level while attempts at 0.7100 have been rebuffed around 0.7090. It’s another pair signing to the yen’s tune
  • EM’s are looking a bit touchy vs USD today so keep one of your 8 eyes on those too. Any big moves will be felt in the JPY crosses and the majors.

With equities looking soggy again today it might be down to the yanks to inject some positivity there, if we see a US sell off, that’s going to pour more fuel on this fire and risk will suffer again. We’ll be hoping for a bit more clarity there as markets were very indecisive in the US.

Bond yields need to be eyed again too, with European yields up. US bond markets are back open and yields have been holding steady.

No data again today so it’s headline watching for us again. It’s going to be hard to give merit to most moves so if you grab a trade and get it in the green, lock in as much as possible and see what you can squeeze.

 

Ryan Littlestone
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