Greenback grabbing continues

Tuesday 26 September 2023

More USD demand prevailing amid rising US bond yields but some verbal intervention from Japanese government this morning has taken a little bit of froth off the USDJPY rise which has staged a small retreat having finally broken through 149.00 with the widely touted key 150.00 level almost in sight. Another US government shutdown in the news but reports now that it will be avoided for a while at least with the Senate close to agreeing some additonal funding to keep it open after 1 Oct.

Equities still looking a little soggy but off their lows in early European trading while WTI is now capped into $90.00 and testing $88.00 this time in an extended retreat amid the softer risk tones overall. Gold finding support around $1910 this time after failing to make recovery above $1920 with natural sellers still poised and tight range prevailing. Geopolitical concerns still very much a threat to market stability with focus on increasing Ukraine/Russia tension but also the Middle East among other areas of conflict.

GBPUSD: 1.2220-30 providing the cap now and falling to test 1.2160-70 amid the relentless USD demand and GBPJPY supply. Jobbing pips banked again, keeping core shorts still and I remain poised for further rally re-sells.

EURGBP: Holding around 0.8675 again in retreats but capping between 0.8700-10 still. More two-way expected overall but should remain underpinned for the moment. GBPJPY: Capped at 181.80-00 amid the GBP supply/softer risk tones but a base around 181.10 a for the moment as core pairs find some dip demand. Sellers ever poised as I've been warning.

EURUSD: Capping into 1.0640 this time amid the general USD demand but holding 1.0570 so far. I remain a rally seller overall. Options in play should we rally. USDJPY: A good hold of 148.50-60 once we broke up through yesterday and onwards through 149.00 before capping into 149.20 and falling on the Suzuki verbal threats this morning to post 148.80 as I type.Ongoing fears of MOF/BOJ intervention continue. I remain a rally seller as preferred side overall at these elevated levels but with patience a virtue as ever.

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

Interbank rates: 08.38 BST

GBPUSD 1.2170

EURUSD 1.0584

EURGBP 0.8695

GBPEUR 1.1500

USDJPY 149.00

GBPJPY 181.20

GBPCAD 1.6418

GBPCHF 1.1112

GBPZAR 23.0404

GBPHKD 9.4882

USDCHF 0.9131

EURCHF 0.9667

EURHKD 8.2506

AUDUSD 0.6403

NZDUSD 0.5948

USDCAD 1.3497