Monday 27 February 2023
The US Dollar remains the favoured currency again as the month draws to a close and a new week gets underway. US PCE data on Friday showed strong inflationary pressure, underpinning the Greenback. BOJ Governor nominee has been out making a few comments in the Asia session but nothing we didn't know albeit not pleasing the JPY mon pol hawks either. Per my recent updates month-end flow signals are pointing to USD demand with no particular weakest currency so keep an eye on the 4pm London fix again in addition to the general flow of USD demand we're seeing at the moment.
Equities are off their Friday lows and heading north again as I type while WTI has also enjoyed a decent bounce to $76.60 after holding $74.00 on Friday then $75.50 in Asia amid some better risk tones. Gold found itself running out of love on Friday, breaking down through $1820 but holding $1800-05 for the moment amid the global uncertainty. Ukraine/Russia war continues to be the main ge-political elephant in the room.
GBPUSD: A decent hold of 1.1920 this morning after capping at 1.2030 on Friday amid the general USD demand. EURGBP: Tightly bound still and holding 0.8800-10 now but with sellers poised into 0.8835 for the moment. Expect some more two-way trading as core pairs fluctuate. GBPJPY: A support line now forming at 162.50-60 amid firmer risk tones after the hold of 162.00 on Friday. Sellers will remain poised though as the uncertainty continues.
EURUSD: Holding 1.0530 in the latest retreat with sellers capping at 1.0580 and now 1.0560 amid the general USD demand and some pips banked in the retreat.Some option contract interest in play. USDJPY: Capping around 136.50 so far in the latest rallies but equally holding 136.00 in the dips amid the general USD demand and firmer risk tones.
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 more info.
Interbank rates: 08.25 GMT GBPUSD 1.1956 EURUSD 1.0552 EURGBP 0.8825 GBPEUR 1.1331 USDJPY 136.20 EURJPY 143.70 GBPJPY 162.92 GBPCAD 1.6265 GBPCHF 1.1270 GBPZAR 22.0230 GBPHKD 9.3168 EURCHF 0.9937 EURHKD 8.2232 AUDUSD 0.6717 NZDUSD 0.6151 USDCAD 1.3595 USDCHF 0.9417
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