Thursday 9 February 2023
Another 24 hours of mixed sentiment for the Greenback with some USD supply now returning as the central bank second-guessing continues. All very tightly bound still as the week draws to close. This morning BOE'S Bailey and other from the MPC appear before UK MPs at 09.45 GMT to explain last week's rate hike and statement.
Equities have rallied again amid some generally firmer risk sentiment while WTI has also had a good rally from $77.50 and testing resistance into $79.00. Gold has failed at the $1885 area again this morning but tightly bound amid the uncertainty. Ukraine/Russia war continues to be the elephant in the room amid other geo-political risk and Zelensky is ramping up the pleas to get further support from the UK/Europe. US weekly jobless claims will be keenly awaited at 13.30 GMT in the wake of Friday's strong NFP data.
GBPUSD: Holding 1.2060 yesterday ahead of the stronger 40-50 support then higher at 1.2080 before finally cracking 1.2120 nd testing stronger res/offers at 1.2150 amid the USD supply.I remain a rally seller. EURGBP: Capping now at the former 0.8880-85 support line as GBPUSD rally outstrips EURUSD.Expect some more two-way trading. GBPJPY: Capping at 159.20 after a spike but holding 158.20 as core pairs find some dip demand amid the better risk tones. Sellers poised still.
EURUSD: Holding 1.0710-20 this time before breaking up through the stubborn 1.0760 resistance amid the USD supply but failing to make much further headway. I remain a rally seller as preferred side still.USDJPY: Capping into 131.80 this time but holding 130.80 in the retreat so far helped by some JPY risk-on supply. Rinse n repeat for the moment with the USD jury out.
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 details.
Interbank rates: 08.38 GMT
GBPUSD 1.2118
EURUSD 1.0752
EURGBP 0.8871
GBPEUR 1.1270
GBPCAD 1.6254
GBPCHF 1.1142
GBPZAR 21.4632
GBPHKD 9.4493
USDJPY 130.96
EURJPY 140.80
GBPJPY 158.70
EURCHF 0.9878
EURHKD 8.3845
AUDUSD 0.6974
NZDUSD 0.6360
USDCAD 1.3406
USDCHF 0.9188
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