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Writer's pictureMike Paterson

Risk sentiment underpinned still

Wednesday 9 February 2022

Not a lot going on in the FX price action world right now as markets continue to anticipate the level and timing of Central Bank rate hike action but equity markets remain underpinned and that keeps JPY and EUR supply in the mix. Oil still making its mind up while Gold nudges higher again amid all the uncertainty.


Talking of CBs we have BOE Chief Economist speaking at 13.10 GMT, then Fed's Mester BOC Governor Macklem at 17.00 GMT.


As ever, a case of not over-analysing or second-guessing but keeping your focus on price action in core and cross-pairs and identify ranges and what levels present value for money. Patience invariably a virtue but don't confuse patience with being stubborn either in entry or exit.


GBPUSD: Support now at 1.3520-30 helped by the EURGBP retreat and GBPJPY demand but still struggling to make much headway through 1.3560 after yesterday's option-led interest helped cap. EURGBP: Still on the backfoot amid some general EUR weakness and currently testing support at 0.8415-20 again where we held yesterday. Softer tones helping to underpin GBPUSD. GBPJPY: Support now at 156.00-20 and testing 156.80 offers amid the JPY supply and EURGBP retreat.


EURUSD: Holding around 1.1400 still but failing at 1.1435 amid softer EUR tones generally. USDJPY: Now finding support around 115.25-30 amid the USD dip demand and JPY supply but failure above 115.60 this time and some re-sells placed per ongoing strategy. Good size option interest should we rally a little higher. EURJPY: Capping at 132.00 still as the EUR supply outstrips that of JPY but dip demand now at 131.60 and 131.40. USDCHF: 0.9220 support line still but equally capping at 0.9260 amid ongoing EUR supply but with SNB ever vigilant and some USD demand to help support. Rally sellers still poised. EURCHF: Holding 1.0530 support with SNB vigilant that further falls are kept in check as I highlighted yesterday.Sellers stil poised though.


AUDUSD: Support/bids now coming in at 0.7130 amid firmer Gold and AUDJPY demand and a rally to look at 0.7160-80 offers/res as I type. General USD demand helping to cap and some option interest lurking up here too.USDCAD: 1.2675-80 now providing support amid variable oil price and general USD demand but failure at 1.2720 where we have some option interest today.


Let's continue to be careful out there in all things. Staying safe must be our main priority still.


Interbank rates: 08.30 GMT

GBPUSD 1.3560

EURUSD 1.1423

EURGBP 0.8421

GBPEUR 1.1870

GBPJPY 156.44

GBPCAD 1.7221

GBPCHF 1.2527

GBPZAR 20.7875

GBPHKD 10.5632

USDJPY 115.35

EURJPY 131.79

EURCHF 1.0547

EURHKD 8.8991

AUDUSD 0.7158

USDCAD 1.2707

USDCHF 0.9234



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