Tuesday 9 May 2023
Concerns/fears over the slowing global economy were given some further evidence with Chinese trade data showing imports falling greater than expected. Apart from that BOJ Ueda’s comments that they will end YCC if 2% target achieved in a sustainable fashion caused a little action on JPY but it's not the first time he's said it and so limited impact overall. FX markets still ranging as we wait on tomorrow's US CPI data and then BOE policy decision on Thursday.
Equities are retreating toward yesterday's lows this morning but FTSE pushing down further while WTI is also paring revent strong gains and now capping around $73.00 again after a hold of $71.50-00 yesterday. Gold pushed back down to $2020 after capping at $2030 as natural sellers take advantage of the recent strength still. Ukraine/Russia war continues to be the main geo-political elephant in the room with ongoing US/China/Taiwan tensions in the mix too.
GBPUSD: A rally to fresh recent highs of 1.2669 yesterday amid some general USD selling and helped by some EURGBP supply but now 1.2600 again. I remain a rally seller as my preferred side but equally dip buying a play. As always it's a question of identifying the risk/reward levels. BOE on Thursday casting a shadow. EURGBP: Capping into 0.8730 now and testing 0.8700 as the post ECB slide continues. Expect some two-way business still overall with BOE in focus too.
GBPJPY: Capping around 171.00 yesterday and falling to 169.80 amid the generally fragile risk and core pairs capping Sellers prevailing at 170.40 this morning .
EURUSD: Testing the old 1.0975-80 support area this morning after capping at 1.1040-50 yesterday and that area still remains pivotal. I remain a rally seller as my preferred side overall. USDJPY: Another USDJPY retreat to look at 134.75 this morning after capping at 135.30 yesterday. I still prefer to sell rallies/be long JPY but caution still required in these ever-fickle markets.
More detailed analysis across a variety of pairs available from mike@mspfx.co.uk
Interbank rates: 08.45 BST
GBPUSD 1.2605
EURUSD 1.0983
EURGBP 0.8711
GBPEUR 1.1480
USDJPY 134.84
GBPJPY 169.91
GBPCAD 1.6873
GBPCHF 1.1250
GBPZAR 23.2695
GBPHKD 9.8231
USDCHF 0.8924
EURCHF 0.9800
EURHKD 8.5567
AUDUSD 0.6760
NZDUSD 0.6330
USDCAD 1.3380
Comments