FX snapshot – GBP/USD, EUR/USD, AUD/USD, USD/CAD

Risk assets are being sold across the board this morning, with GBP/USD still reeling from Carney’s speech yesterday.

GBP/USD
Source: Bloomberg

GBP/USD downside continues
Carney’s speech yesterday provided yet more downside fuel for the bears. While key data has given the pair reason to pause around $1.41, further downside seems likely.

Bounces back towards $1.43 will bring out the sellers, and even the 50-hour simple moving average at $1.4226 will be a major task to break through. 

EUR/USD looking to break resistance
The area around $1.0960 stemmed the rally last Friday, so if the move higher of the past two sessions cannot get above here we look to the downside around $1.0860, and then $1.0840. The EUR/USD target for any upside move remains at $1.1030.

AUD/USD falling back
The evaporation of risk appetite has hit AUD/USD hard, pushing back to the lows of the month around $0.6840. The next target becomes $0.6780, with any rally back towards the $0.6890 area highly likely to be viewed as another chance to sell this pair. It would take a move above $0.70 to cancel out the bearish thesis. 

USD/CAD rally continues
This rally keeps on going (for more see Josh’s note from Monday). Pullbacks will keep being bought, with moves back down towards C$1.4530 and then C$1.4450 as an opportunity to re-enter the trade. The next looming target on the upside is C$1.4784.

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