Greenback retreats again as bond yields fall

Mike Paterson
Nov 17, 2023
2 min read

Friday 17 November 2023

Softer weekly US jobs data provided another catalyst for some USD supply again after Tuesday's sell off. Once again it proves that markets are still dancing on hot coals and second-guessing Central Banks.

The ongoing Middle East back-story sadly continues meanwhile and casts its own shadow over markets but still not driving them atm.Ignore at your peril though.

Equities rose again yesterday as US bond yields fell and still finding a little support in Asia and underpinned as European trading gets underway. WTI continued its fall too and has tested $72.30-50 as sellers prevail again with global demand concerns continuing. Currently back up to $73.75 but still looking shaky. Gold is testing $1990 as I type after holding $1975 yesterday amid the falling bond yields as the jury remains out.

GBPUSD: Capping at 1.2450-60 yesterday as the Greenbck found some demand again and some GBPJPY supply but holding 1.2370 so far helped by the USD supply since. I remain poised for further rally sells when momentum fades.Some options in play potentially at 1.2400. EURGBP: Support at 0.8730 but capping into 0.8765 again. More two-way expected amid the core pair fluctuation. GBPJPY: Capping at 187.50 this time with core pairs both finding rally supply despite firmer risk tones. Sellers still poised amid possible MOF/BOJ intervention and in rapid retreat to 185.50 this morning as USDJPY falls through 150.00.

EURUSD: Support around 1.0830 again after another 1.0890 cap and some pips gratefully banked from re-sells. I remain a rally seller overall still. USDJPY: Now broken down through the 150.00-20 support amid USD supply returning but holding 149.50 so far. Pips gratefully banked proving patience/position management ever crucial and I remain a rally seller as preferred side overall at these elevated levels. MOF/BOJ cast a shadow still. EURJPY: Support at 162.30 after capping at 164.00 then 163.50 amid USDJPY retreat outstripping EURUSD rally.

For more detailed analysis across a variety of pairs email mike@mspfx.co.uk

Interbank rates: 08.43 GMT

GBPUSD 1.2383

EURUSD 1.0844

EURGBP 0.8756

GBPEUR 1.1419

USDJPY 149.81

GBPJPY 185.52

GBPCAD 1.7050

GBPCHF 1.1013

GBPZAR 22.7769

GBPHKD 9.6596