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  • Writer's pictureMike Paterson

Greenback grabbing returns after strong US data

Monday 6 February 2023

Friday saw some very strong US jobs and ISM data and we've seen solid USD demand since as markets price in further rate hikes from the FOMC. In a busy weekend Chinese equities have fallen after US-China tensions increased wih the US shooting down what they claim to be a Chinese spy balloon. JPY has weakened after the Nikkei reported that BOJ Deputy Gov Amamiya, the most dovish candidate, has been tipped for the BoJ Governor role when Kuroda steps down. USDJPY snd JPY pairs opened much higher in Asia but have fallen back a little since as liquidity returns.


Equities are off their highs once more and in retreat again as I type while WTI has found a strong cap at $78.00 this time now but a support line building at $73.25-30 . Gold has fallen through the strong $1900-10 area but a decent line at $1860 holding the retreat so far. Ukraine/Russia war continues to be the elephant in the room amid other geo-political risk. Large earthquake in Turkey also in the headlines.


GBPUSD: Holding 1.2025 support so far ahead of the large bids/support at 1.2000 helped by the renewed GBPJPY demand after capping at 1.2250 then 1.2150 amid Friday's USD surge post-data. I remain a rally seller and hope the steer has helped. EURGBP: Strong rally again on Friday after holding the 0.8920 area still and helping to cap GBPUSD but failing at 0.8980. Looking underpinned still with support still at 0.8910-20. GBPJPY: Gapped from 158.00 NY close to open in Asia at 159.50 on the BOJ nomination JPY selling and holding 158.50 in the retreat since as core pairs find dip demand. Sellers poised still but caution required atm.


EURUSD: A solid drop from 1.0930 amid Friday's USD surge to post lows around 1.0770 and now capping at 1.0800. I remain a rally seller. USDJPY: A hold of 128.30 on Friday before the rapid surge to 131.00 post-US data and then another pump into 132.50-60 as Asia gapped on the open with the BOJ Governor nomination news.


Plenty more to read in my full report which you can receive by emailing mike@mspfx.co.uk. Also for details on my 1-2-1 mentoring services for traders and my market strategies across a number of pairs each day.


Interbank rates: 08.30 GMT

GBPUSD 1.2053

EURUSD 1.0787

EURGBP 0.8943

GBPEUR 1.1182

GBPCAD 1.6165

GBPCHF 1.1120

GBPZAR 21.1643

GBPHKD 9.3792

USDJPY 131,85

EURJPY 142.26

GBPJPY 159.06

EURCHF 0.9971

EURHKD 8.3877

AUDUSD 0.6927

NZDUSD 0.6332

USDCAD 1.3400

USDCHF 0.9241


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