Wednesday 29 March
nother up and down day yesterday but we're seeing some better risk sentiment prevailing overall with equity and oil price dip demand again to help bring a few JPY sellers to the table led by USDJPY after being again supported by that decent 130.30-50 area. All very strange given month-end flow signals were JPY positive but perhaps all been done in recent days. The Spot-date month-end 4pm London fix will be interesting.
Softer Aussie CPI data sparks the RBA pause or hike question for next week as the CB second-guessing game continues.
Equities on the rise again while WTI found a base this time into $72.25 then $73.00 but capping at $74.00 as I type. Gold has seen a retreat from $1975 this time amid the better risk tones but holding $1950-60 so far. Ukraine/Russia war continues to be the main geo-political elephant in the room with ongoing US/China tensions in the mix too currently.
Remember, focus on the price action and let the algos do the heavy lifting/dropping. The important thing is to identify your preferred risk/reward entry/exit levels prior and be poised to execute.
GBPUSD: Capping into 1.2350 again after a decent rally from 1.2280 yesterday.I remain a rally seller still and I've resold small in latest rally for an interest as I think we're still ranging overall. EURGBP: Testing 0.8800-05 again as I type after a good hold of 0.8780 this time. Expect some more two-way trading as core pairs and risk both fluctuate. GBPJPY: Support line at 161.00 and now 162.00 amid the better risk tones and JPY supply. Capping into 162.75 as markets remain fickle.
EURUSD: Decent support building yesterday at 1.01815 and again this morning after capping at 1.0850 and I remain a rally seller as my preferred side. USDJPY: Underpinned at 130.30-50 per my comments above and a solid rally helped by better risk JPY supply but failing at 132.10 so far.
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Interbank rates: 08.15 GMT