Good two-way business still

Wednesday 30 August 2023

FX pairs ranging again as the second guessing continues with better risk tones providing some JPY supply again after yesterday's USDJPY retreat amid the weaker US data.

Month-end USD flow signals point to mild buying interest still with strongest versus CAD but also some EUR corp demand again too.Slightly firmer regional German inflation data this morning has also helped underpin EUR pairs.

Equities ranging too after a decent rally from yesterday's lows while WTI has held at $79.50-60 again and posting $81.40 as I type as the uncertainty continues. Gold finding support around $1925 now after breaking back up through yesterday but natural sellers now prevailing into $1940 as the jury remains out and tight ranges prevail. Geopolitical concerns still very much a threat to market stability with focus on Ukraine/Russia but also tension in the Middle East among other areas of conflict.

GBPUSD: Support at 1.2580-now after a good hold of 1.2560 yesterday helped by better risk GBPJPY demand but failing to make much headway abov 1.2600 still as we continue to range. I remain bearish on the UK and GBP overall, ever-poised to sell rallies still. EURGBP: Finding a base at 0.8585-90 now after breaking up through amid some general EUR demand but capping at 0.8610 with more two-way expected overall as core pairs make their mind up. GBPJPY: Capping at 185.20 this time after holding 184.00 yesterday amid some natural JPY supply. GBP sellers will remain poised as risk remains fragile.

EURUSD: Holding support into 1.0800 again yesterday amid some USD supply and month-end EUR demand but capping at 1.0890.Pips banked along the way and I remain a rally seller. USDJPY: Capping at 147.40 yesterday and a sharp retreat after the soggy US data before support coming in at 145.60-80 as we continue to range tightly. I remain a rally seller as preferred side overall but with patience a virtue as ever. I still regard the risk being to the downside but no denying it's still underpinned for the moment.

More detailed analysis across a variety of pairs and 1-2-1 mentoring sessions for traders from mike@mspfx.co.uk

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GBPUSD 1.2615

EURUSD 1.0854

EURGBP 0.8592

GBPEUR 1.1635

USDJPY 146.44

GBPJPY 185.15

GBPCAD 1.7138

GBPCHF 1.1117

GBPZAR 23.4754

GBPHKD 9.8387

USDCHF 0.8792

EURCHF 0.9552

EURHKD 8.4525

AUDUSD 0.6465

NZDUSD 0.5947

USDCAD 1.3563