• Mixed bag as the roller coaster ride continues

    PBOC set the USDCNY reference rate above 7 for the first time IN 10 years but lower than expected and we've seen some variable risk plays since, initially on then off again, but FX pairs remain in tight ranges. Chinese trade data showed more surplus growth with US with imports dropping faster than exports and that will remain a focus as the trade war continues but with China saying they will talk to US again in September. Gold remains underpinned and has posted new 6+-year highs of $1510. Equities fell but then rallied as did oil.All in all the market remains in fragile mode and traders/algos dancing on hot coals still.

    GBPUSD based around 1.2120 as EURGBP rose to test 0.9250 resistance (GBPEUR support 1.0810) again and with GBPJPY falling again but we've seen some dip demand on the slightly better risk sentiment but still unable to break above 1.2185 with rally sellers ever poised.EURGBP posted highs of 0.9248 amid general EUR demand.GBPJPY fell again but rallied on that risk-on moment but rally sellers, including me, remain poised.

    I remain GBP bearish overall and will continue to rally-sell as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout.No reason to change my view any time soon.

    USDJPY has been back down to test 105.50 but held well again and recovered well enough amid better risk conditions to test 106.30. USDCHF remainds tightly bound helped by the steadier EURCHF and EURUSD with the SNB ever watchful. EURUSD fell below 1.1200 again but that inherent dip demand kicked in again before rallying and now seems to be in a range of 1.1185-1.1235 for the moment with large option expiry interest today at 1.1240 expected to cap. I'll repeat what I said yesterday in that if we see further Yuan weakening we might reasonably expect to see decent Euro demand overall as the go-to diversification and the reverse is true.

    AUDUSD has staged a decent rally to post 0.6783 helped by AUDJPY demand, Chinese data and that higher Gold price but rally sellers will remain poised. USDCAD has capped above 1.3300 helped by some CADJPY demand and oil price basing.

    Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.

    Don't forget I offer 1-2-1 mentoring if there's areas of trading this latest volatility that you might need so further help with.

    Have a good day out there one and all.

    Twitter: @MSPFX and @MikePatersonFX

    Interbank Rate 08.50 BST

    GBPUSD 1.2163

    EURUSD 1.1223

    EURGBP 0.9226

    GBPEUR 1.0837

    GBPAUD 1.7943

    GBPCAD 1.6157

    GBPJPY 128.98`

    GBPZAR 18.3360

    GBPHKD 9.4300

    USDJPY 106.05

    USDZAR 15.0720

    EURJPY 119.03

    EURCHF 1.0932

    EURHKD 8.7016

    AUDUSD 0.6778

    USDCAD 1.3285

    USDCHF 0.9743


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