Lots of volatility, particularly in the sterling, as heavy flows ahead of the upcoming US holiday weekend and for balancing at the end of the first 6 months (as well as financial year end in some centres) ensured lots of movement. I’m not reading too much into it just yet. EUR/USD remains well supported on dips and the short term trend is up, so don’t be selling mid-stream, wait for rallies. Cable saw lots of break buying above 1.6660 and these longs have probably now been cut- it still seems to be in an uptrend but we need to keep a close eye on what EUR/GBP does. The USD/JPY buying on dips towards 94.75/95.25 is said to be particularly large but I’m sure the selling will be equally so on any decent rallies. This pair is in a range. The AUD is overvalued in my opinion and while it may struggle a bit higher against the USD, I’m still a seller on rallies at these levels.
Good luck today.
