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  • Writer's pictureMike Paterson

Greenback grabbing returns

Monday 5 June 2023

The small print in Friday's US jobs and wages NFP data gave some bearish tones to the stronger headline numbers but we've seen the Greenback in demand again after the initial rise and fall as the general sentiment remains USD positive despite last week's wobble on US Fed skip/pause talk proving just how fickle/clueless/second-guessing these markets are at the moment.

Softer EU PMI data out this morning and CB focus on the RBA and BOC this week with both having to re-think their strategies perhaps after recent stronger inflation data.Saudi Arabia's decision at the OPEC+ weekend meeting to make a further 1m bpd output cut for another month (possibly longer) has seen oil prices rise.


Equities have rallied strongly again since NFPs while WTI broke back up through $72.50 then gapped higher on the Asia opening on the Saudi news but capping at $74.50 so far as sellers take another opportunity amid the ongoing global economic growth concerns. Gold is in retreat again as natural sellers prevail once more and firmer risk tones return with $1950 support now broken again as the jury remains out. Increasing tensions in the Ukraine/Russia war continue to be the elephant in the room along with US/China tensions as the world remains a fragile place. Sudan unrest still adding to the uncertain picture too.

GBPUSD: Friday duly saw a cap into 1.2550 and now testing 1.2380-00 support again amid the USD demand. I remain a rally seller. EURGBP and GBPJPY still very much in play. EURGBP: Back up through 0.8600 after a good hold of 0.8580 as we continue to range with core pairs each finding their vairables. Sellers still poised. GBPJPY: Capping at 174.60 on Friday and now testing 17380-00 support as core pairs find rally supply. Sellers ever-poised but some demand expected too for the moment still.

EURUSD: A solid retreat back through through 1.0750 from 1.7080 amid the USD demand but holding around 1.0680so far now. I remain a rally seller as my preferred side. Some options in play today again. USDJPY: A further rally to test 140.50 amid the general USD demand after the poST-NFP cap into 139.50-60 before finding decent support at 139.00. I still prefer to sell rallies/be long JPY overall. Dip demand still expected though as I've been warning as the FOMC jury remains out.


More detailed analysis across a variety of pairs available plus mentoring services from mike@mspfx.co.uk


Interbank rates: 08.43 BST

GBPUSD 1.2403

EURUSD 1.0693

EURGBP 0.8622

GBPEUR 1.1600

USDJPY 140.37

GBPJPY 174.05

GBPCAD 1.6653

GBPCHF 1.1298

GBPZAR 24.1031

GBPHKD 9.6596

USDCHF 0.9110

EURCHF 0.9740

EURHKD 8.3273

AUDUSD 0.6593

NZDUSD 0.6049

USDCAD 1.3421



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