Monday 20 February 2023
US and Canada holidays today and a potential Monday malaise ahead as markets continue to second-guess the Central Banks but of course we're not going to assume anything as it's both futile and dangerous. The Greenback is off its Friday highs but equally still underpinned overall for the moment as another week gets under way.
Equities also remain in firmer mode after a decent day on Friday while WTI is trading off its Friday $75.50 lows but capping at $77.50 so far. Gold found support around $1820 capping at $1845 again as I type as we continue to trade tightly amid the uncertainty. Ukraine/Russia war continues to be the elephant in the room with talk now of China possibly providing arms to Russia.
GBPUSD: A decent hold of 1.1920 on Friday but failing at the now pivotal 1.2050-60 so far with larger sell interest lurking 1.2080-00. I remain a rally seller but caution still required at these lower levels. EURGBP: Holding 0.8875-80 fter Friday's cap at 0.8930. Expect some more two-way trading as core pairs fluctuate. GBPJPY: A support line now forming at 161.00-20 amid the generally better risk tones but capping at 161.75 with sellers poised still as the JPY jury remain out. Ueda due to present his case on Friday.
EURUSD: Holding 1.0610-20 in the Friday retreat amid the USD demand but capping above 1.0700 so far. USDJPY: Finally capping arounfd 134.55 after eventual hold of 134.00 on Friday and in Asia. Still poised to re-sell rallies when momentum fades as I still favour being long JPY on the crosses too. EURJPY: 143-144 still covering it Good two-way but looks underpinned still as core pairs find dip demand. USDCHF: Capping at 0.9280 then 0.9260 so far after the rally failed above 0.9320 but now supported at the pivotal 0.9220 area.
Plenty more to read in my full report and more detailed update for traders plus my 1-2-1 mentoring sessions. Mail mike@mspfx.co.uk for more info.
Plenty more to read in my full report and more detailed update for traders plus my 1-2-1 mentoring sessions. Mail mike@mspfx.co.uk for more info.
Interbank rates: 07.55 GMT
GBPUSD 1.2050
EURUSD 1.0700
EURGBP 0.8880
GBPEUR 1.1262
USDJPY 134.04
EURJPY 143.42
GBPJPY 161.53
GBPCAD 1.6180
GBPCHF 1.1112
GBPZAR 21.7004
GBPHKD 9.3714
EURCHF 0.9877
EURHKD 8.3227
AUDUSD 0.6910
NZDUSD 0.6244
USDCAD 1.3464
USDCHF 0.9230
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