All eyes on the FOMC

Wednesday 16 June 2021

Yes folks, the time has come once again for another Central Bank to tell us there's nothing to worry about on the rapidly rising inflation and it's all transitory. This time it's the turn of the US Federal Reserve so will Powell & Co hint at tapering any sooner than currently stated? Will markets continue to price in something sooner anyhow? We'll find out at 18.00 and 18.30 GMT.

UK inflation came in above expectations earlier but no surprises there even though the algos gave the Pound a lift higher on the back of it.

Jury on the Greenback and risk sentiment still out so,as always in these fickle times, ignore the noise and be careful with your trading as we continue to range tightly. Pick your preferred entry/exit levels and don't be greedy or over-analyze. Patience and discipline are key too of course. Let the algos do the work around CBs, data releases and headlines and take advantage of that as suits your interest. Trying to predict ahead of the event rarely works well.

GBPUSD: A nice dip below 1.4040 yesterday and back up to 1.4123 since so let's see what happens from here as we continue to range. I remain a rally seller but respecting the dip demand/range trading.EURGBP: Underpinned still at 0.8580 but failing above 0.8600 again. Range trading still.GBPJPY: A good base now forming at 154.80 but equally failing into 155.40 where we've now capped as risk sentiment turns a little softer

I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats.

EURUSD: Capping again into 1.2140 after holding 1.2100 amid some decent EUR cross demand again. USDJPY: 110.25 capping the latest rally again and now back below 110.00 amid some generally softer risk and USD tones. EURJPY: 133.20 still providing a decent base after another fail at 133.60.Good two-way pips still.USDCHF: Testing 0.8980 again after capping at 0.9010 this time with EURCHF tightly bound demand with the SNB ever vigilant.EURCHF: Holding 1.0880 still in latest retreat with SNB shadow ever present

AUDUSD: Yet more options interest today at 0.7740-45 with 0.7680 still holding the retreats but rallies tempered by soft copper/commodity prices still. USDCAD: Holding 1.2160 still after capping at 1.2200 helped by softer USD tones but aome CADJPY supply also still helping to support in the dips. Large option interest tomorrow ar 1.2200 also in play.

Let's continue to be careful out there in all things. Staying safe must be our main priority still.

Interbank rates: 08.50 BST

GBPUSD 1.4111

EURUSD 1.2129

EURGBP 0.8594

GBPEUR 1.1634

GBPCAD 1.7186

GBPJPY 155.12

GBPZAR 19.3948

GBPHKD 10.9317

USDJPY 109.93

USDZAE

EURJPY 133.32

EURCHF 1.0891

EURHKD 9.3964

AUDUSD 0.7701

USDCAD 1.2180

USDCHF 0.8979