Thursday 6 April 2023
As we head into the long Easter holiday weekend for many parts of the world we've seen some good two-way business again amid some soggy risk tones as markets continue to second guess the US Fed and looking for softer NFP data tomorrow after the disappointing ADP report yesterday. Weekly jobless claims today in focus too therefore.
Equities off yesterday's lows as Europe get going but capping again as I type while WTI is in retreat again after another hold of $79.50 yesterday and in Asia following a cap at $80.80 twice. Gold saw a further rally through $2030 yesterday amid the soggy risk tones but capping and retreating before a hold of $2000-10 and now capping into $2020. Ukraine/Russia war continues to be the main geo-political elephant in the room with ongoing US/China tensions in the mix too and now some fresh Middle East tensions.
GBPUSD: Capping at 1.2500-10 yesterday helped by GBPJPY turned lower supply again but finding good support between 1.2430-40 helped by EURGBP capping at 0.8780 and falling back below 0.8750 as EURUSD runs out of steam too.Pips banked and re-sells placed as we continue to range. EURGBP: Another test of 0.8780 resistance ended in failure and we've fallen back through 0.8740. Support still coming in at 0.8730 but sellers poised 0.8760 atm. Expect more two-way business but beware of range break. GBPJPY: We've seen a retreat to 162.80 as fragile risk returns with a cap now at 164.00 and markets remain fickle
EURUSD: Decent support building at 1.0880 after capping at 1.0965-75 again with 1.1000 a step too far for the moment. Some pips banked in the retreat and I remain a rally seller as my preferred side overall. USDJPY: Failing at 131.80-00 amid the general USD supply and fragile risk JPY demand but finding good support into strong 130.40-50 area.
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