Oil lower, equities higher, Greenback underpinned again

Mike Paterson
Nov 8, 2023
2 min read

Wednesday 8 November 2023

The tragic Middle East back-story sadly continuing but oil prices are notably still in retreat amid fears of reduced demand out of the US and China amongst others as the global economy stutters. The Greenback remain underpinned despite some softer US bond yield tones again with JPY and CHF supply still notable overall amid the firmer risk and helping to underpin core pairs again but GBPUSD feeling some pain with GBP sellers prevailing again across the board.

Equities remain underpinned as European trading gets underway afte rising again in NY adding to some better risk tones. WTI has found some support into $76.50 as I type after cappin at $79.50 then $78.00 this time as the slippery side continues with the jury still out. Gold capped at $19971 this time as risk firmed with natural sellers ever poised still but has found support around the $1965 again this morning as we continue o range tightly.

GBPUSD: Capping at 1.2300-10 and now testing support at 1.2250 amid the USD demand but retreat along the way tempered by some GBPJPY demand albeit with soft GBP tones overall as sellers prevail once more. I remain poised for rally sells when momentum fades.

EURGBP: Now testing 0.8700-10 after a hold of 0.8680-85 after yesterday's break up through amid the GBP supply. More two-way expected. GBPJPY: Holding 184.60 this morning amid the better risk tones after capping at 185.30 this time as GBP weakens again generally.

EURUSD: Support at 1.0660 so far this morning after the retreat from 1.0700 amid the USD demand returning. I remain a rally seller overall. USDJPY: Breaking back up through 150.60 yesterday and a test of previous resistance around 150.80 amid the USD demand and better risk tones. I remain a rally seller as preferred side overall at these elevated levels but with patience a virtue as ever.

For more detailed analysis across a variety of pairs email mike@mspfx.co.uk

Interbank rates: 08.36 GMT

GBPUSD 1.2267

EURUSD 1.0675

EURGBP 0.8700

GBPEUR 1.1490

USDJPY 150.62

GBPJPY 184.80

GBPCAD 1.6895

GBPCHF 1.1048

GBPZAR 22.6107

GBPHKD 9.5583