A big week ahead

Monday 30 January 2023

Yes folks, tight ranges again amid the mixed USD tones and CB/inflation second-guessing with FOMC, BOE, ECB and US NFPs all on their way this week. Month-end flow signals still pointing to some equity/bond markets-related USD supply versus the US Corporate demand.

Equities are off their highs again and in retreat as European trading gets underway while WTI is also lower having capped at $82.50 then $80.50 and now testing $79.00. Gold looking at the $1920 support again as I type after failing into $1935 so still tightly bound as the guessing games continue. Ukraine/Russia war continues to be the elephant in the room amid other geo-political risk.

Remember, focus on the price action and let the algos do the heavy lifting/dropping. The important thing is to identify your preferred risk/reward entry/exit levels.

GBPUSD: Capping above 1.2410 this time but still holding that 1.2340 line again in the retreat but interim support at 1.2360 still for the moment. Keep an eye on GBP crosses still. EURGBP: Holding 0.8760-65 but failing into 0.8800.Expect some two-way business still as core pairs and CBs make their mind up. GBPJPY: Finding support at 160.20 this time after capping at 161.40 as the jury remains out. Good two-way pips expected still whatever your preference.

EURUSD: A good hold of 1.0840 in Friday's extended retreat and now testing the 1.0880-00 resistance again. USDJPY: A hold of 129.20 in the retreat from 130.30 on Friday. Now back above 130.00 amid some general USD demand/JPY supply. EURJPY: Holding 140.60 a couple of times and a solid rally to 141.50 as I type amid some general JPY supply.Good two-way expected overall as markets remain ever-fickle. USDCHF: Support coming in notably around 0.9200 now and testing again as I type after capping at 0.9220-30 again. I prefer the rally-sell side still too for the moment but equally a case for dip buying with EURCHF also finding support at 1.0000. SNB ever vigilant.

Plenty more in my full report which you can read by emailing mike@mspfx.co.uk.

Interbank rates: 08.28 GMT

GBPUSD 1.2382

EURUSD 1.0881

EURGBP 0.8786

GBPEUR 1.1380

USDJPY 130.00

EURJPY 141.38

GBPJPY 160.94

GBPCAD 1.6503

GBPCHF 1.1402

GBPZAR 21.4075

GBPHKD 9.6440

EURCHF 1.0028

EURHKD 8.4745

AUDUSD 0.7074

NZDUSD 0.6478

USDCAD 1.3344

USDCHF 0.9216