Jury out again

Friday 28 January 2022

Risk sentiment has been variable in the past 24 hours as the dust settles on the post-FOMC moves so we've seen good two-way business as the jury considers its verdict and still second-guessing. USD demand still notable though overall and that's seen some more solid gains across the board with commodity currencies taking another hit.

As ever, a case of not over-analysing or second-guessing but keeping your focus on price action in core and cross-pairs and identify ranges and what levels present value for money. Patience invariably a virtue but don't confuse patience with being stubborn either in entry or exit. I will repeat that he who hesitates is often lost in these trading conditions.

GBPUSD: Support into 1.3400 now history and a test of 1.3360 since which held but capping abpve 1.3400 since.

EURGBP: A test of 0.8315-20 (GBPEUR up to 1.2032) where I noted bids yesterday and currently holding amid the variable risk tones. Sellers now at 0.8330-35 (GBPEUR buyers 1.2000) and 0.8360 (1.1960) lurking. GBPJPY: Support now at 154.20 then 153.80-00 after failing into 155.00 as the jury remains out and core pairs find rally sellers.

EURUSD: Testing srong 1.1120-30 support amid the firmer USD and risk tones amid. Option contract interest today nearby. USDJPY: Fresh highs of 115.69 amid the firmer USD and risk sentiment but sellers poised when momentum fades.EURJPY: 128.50-60 the support line again after a hold of 128.35 but failing around 128.80 this morning amid the mixed risk plays. USDCHF: 0.9280-00 the initial support after the firmer risk and USD rally and with SNB ever vigilant but with sellers poised 0.9320-40. EURCHF: That support line at 1.0360-70 still in place with SNB ever-present but sellers remain poised still as the pair fails above 1.0380 amid the mixed risk sentiment.

AUDUSD: Further falls to now test the strong/key 0.7000 support amid firmer USD tones and commodity currency bashing. USDCAD: Strong USD sentiment now brings 1.2730-50 support after a hold of 1.2650 and a solid rally to 1.2775 as oil price caps again.

Hopefully should be another 3 points for the mighty Shrimpers tomorrow at bottom club Dover but never taking anything for granted in this league despite our current better form. having said that I've backed them at 100-1 to finish in top 7.....

Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good week-end.

Interbank rates: 08.28 GMT

GBPUSD 1.3374

EURUSD 1.1129

EURGBP 0.8321

GBPEUR 1.2015

GBPJPY 154.55

GBPCAD 1.7086

GBPCHF 1.2454

GBPZAR 20.7349

GBPHKD 10.4230

USDJPY 115.56