Tuesday 23 July 2024
Some USD demand returning as we continue to range tightly amongst the various unknowns but JPY demand still prevailing with USDJPY once again in retreat after recent dovish remarks from the BOJ on the Japanese economy even if it might delay rate hikes. Yes folks, that's just how fickle these markets are.
Kamala Harris seems to have gathered enough votes to take the Democratic nomination and she's certainly gathering enough fresh donations. Nothing of note on the data or CB speaker front again today so I would expect another cautious day ahead but I'm hoping the Forex gods will prove me wrong ! BOC rate decision tomorrow the focus for CAD pairs with an expected rate cut of 25bps.
US and European equity markets have retreated again in Asia and early European trading with rally sellers still poised for the moment as I've been warning. WTI failed at $80.00 then $79.00 before testing some demand around $77.50 but back up to $78.35 and steady as I type. Ever fickle for the moment and expected to range still. Gold is clinging on to $2400 as I type after a further dip into $2380 amid some more profit-taking with sellers prevailing between $2400-10. Dip demand should remain but profit-takers/sellers still poised.
GBPUSD: Capping between 1.2930-40 in the latest rallies with GBPJPY selling helping to cap along with some general USD demand but holding 1.2900 still so far.More two-way expected amid the USD and cross flow variables. EURGBP: Holding 0.8410-20 still but struggling again to rally too far with ECB/BOE rate cut conjecture in play still. Some EUR supply returning generally. GBPJPY: Another USDJPY failure above 157.00 so capping at 203.00 and now down through 202.00 support to test 201.30-50.
EURUSD: Still capping into 1.0900 but holding 1.0865-70 support so far as we continue to range tightly amid variable cross and USD flows.USDJPY: Capping at 157.20 this time and now nudging down through 156.00 as I type. The price action starting to feel different now as MOF/BOJ intervention fears remain. Entry level/patience is key as always.
Traders - For more detailed analysis across a larger number of FX pairs including market order flows and options expiries email mike@mspfx.co.uk
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