Greenback grabbing returns

Friday 17 February 2023

After a few sessions of Greenback indecision we've seen demand returning after some strong US PPI data had the hawks jumping up and down in delight. Markets still continuing to second-guess the CBs of course but we've seen some risk-off tones amid the USD demand.

Equities have retreated on the softer risk sentiment and WTI is also trading lower on the soggy risk but also on the reports that Russia will maintain its crude oil export volumes in March. Capping at $79.50 again but holding $77.00 so far. Bids/support now $77.00, $76.50, $76.00, $75.50. Resistance/sellers $77.80-00, 0.78.50, $79.00, $79.50. Softer risk hasn't helped the shiny stuff and Gold is also softer trading near its $1819 lows after capping at $1845 this time. Ukraine/Russia war continues to be the elephant in the room amid other geo-political risk.

GBPUSD: Failing at the signficant 1.2050-60 area then 1.2020-30 having broken down through 1.2000 again and now a solid retreat to 1.1916 so far amid the soggy GBP/firmer USD double-whammy. I remain a rally seller but caution still required at these lower levels.EURGBP: Further rally after holding 0.8880-00 as GBP supply continues and now testing 0.8925 again.Looks underpinned for the moment still but expect some more two-way trading as core pairs fluctuate. GBPJPY: A support line now forming at 160.75-80 after holding 160.50 in yesterday's retreat but capping 161.00-20 with sellers poised still amid the softer risk sentimenmt.

EURUSD: Holding 1.0630 in the falls so far having capped at 1.0700 yesterday amid the USD demand and I remain a rally seller as my preferred side still. USDJPY: Finally capping arounfd 135.00 where we have large option interest today after the hold of 133.80 then 134.20 and now 134.60 in the latest retreat.

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.

Twitter: @mspfx @MikePatersonFX

Interbank rates: 08.25 GMT

GBPUSD 1.1922

EURUSD 1.0638

EURGBP 0.8920

GBPEUR 1.1210

USDJPY 134.93

EURJPY 143.54

GBPJPY 160.90

GBPCAD 1.6120

GBPCHF 1.1126