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  • Writer's pictureMike Paterson

Markets a little more settled

Tuesday 11 June 2024

Still in second-guessing mode ofc but after the week-end's political fallout spreading into markets Sunday night and yesterday we've seen some Euro support emerge amid mixed USD tones. Risk sentiment returning a little has produced JPY supply again which is helping to support core pairs too.

This morning's UK jobs/wages data brought a mixed bag with higher unemployment but also higher wages and that will remain a concern to the BOE as they contemplate the timing of first 25bps rate cut.

Attention still focused on tomorrow's US CPI data and latest deliberation from the US Fed FOMC. Little else on the data/CB speaker slate today. Ukraine/Russia war and Middle East tensions still cast their own shadow. Remember as always to identify your preferred risk reward levels and let the algos do their thing.

Equities fell in NY then rallied into the close yet again in a repeeat of recent patterns but falling back as I type with profit-takers still lurking as the CB second-guessing continues. WTI rallied on the better risk tones to test $78.00 after holding $76 then $77.00.00 with plenty of two-way business still expected. Gold has found a base at $2285-95 but equally failing ino $2315 now. Dip demand should remain but profit-takers still poised.

GBPUSD: Capping at 1.2740 now after support coming in at 1.2680 yesterday helped by the initial EURGBP supply. Rally re-sells duly placed. Rinse n repeat. EURGBP: Lows of 0.8440 yesterday but a decent rally as the political fears subside a little but capping into 0.8470 so far. Politics will still supercede ECB/BOE conjecture for the moment. GBPJPY: Holding 199.30-50 but capping at 200.40 amid variable risk and USD tones. Sellers will remain poised in these fickle markets but I'm still expecting dip buyers too.

EURUSD: Failing at 1.0775 after a hold of 1.0730 in the retreat amid the political fallout. I remain a rally seller as my preferred side. USDJPY: Support at 156.75 then 157.00 and now pushing back up through 157.30 helped by renewed JPY supply.

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