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  • Writer's pictureMike Paterson

Round and round and down and up we go

Wednesday 19 January 2022

A mixed bag again this morning with equities rallying again after an esrly wobble while Oil prices are off their new highs but underpinned still. German bund yields have turned positive for the first time since 2019. Markets still second-guessing central banks.

Latest UK inflation data this morning came out higherr than expected which has underpinned the Pound after yesterday's fall as BOE rate hike attention increases again but keep in mind yesterday's wages data was weak and definitiely behind the curve. Throw in the ongoing partygate investigations/chatter and there is still plenty to consider as he faces another PMQs session in Parliament but will continue to hide behind the official investigation. Bailey and his FPC testify to lawmakers today starting from 14.15 GMT.

As always, don't over-analyze or second-guess but keep your focus on price action in core and cross-pairs and identify recent ranges to see whether we hold or break and what levels present value for money. Patience will invariably be a virtue but don't confuse patience with being stubborn.

GBPUSD: A good hold of 1.3570-80 yesterday after the steady fall and pips banked along the way per my tweets. 1.3620-25 becomes immediate resistance. EURGBP: 0.8345-50 support gave way yesterday and we've seen another test of 0.8320-30 (GBPEUR up to 1.2017) and that's helped underpin GBPUSD too. GBPJPY: 155.40 support after yesterday's retreat amid firmer risk and core pair demand snd looking to test 156.00 again.

EURUSD: A steady decline after the 1.1400 support broke but finding some dip demand at 1.1320. USDJPY: A good hold of 114.20 helped by better risk JPY supply but sellers poised 114.60-80. EURJPY: 129.40 and now 129.60 support providing a line again after failure at 130.00. USDCHF: 0.9140 now provding support with SNB ever vigilant amid the general EUR weakness but failing at 0.9180 as EURCHF falls below 1.0400 to new recent lows.

EURCHF: SNB ever vigilant but seeminly biding their time amid the the general EUR selling at the moment.Holding 1.0380 but sellers poised.

AUDUSD: Still holding 0.7175-80 for the moment but sellers lurking 0.7200-20 still. USDCAD: 1.2480-85 support now being tested again after the failure at 1.2525 amid softer USD and firmer oil prices.

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

Interbank rates: 08.53 GMT

GBPUSD 1.3607

EURUSD 1.1344

EURGBP 0.8337

GBPEUR 1.1993

GBPJPY 155.77

GBPCAD 1.6998

GBPCHF 1.2464

GBPZAR 20.9395

GBPHKD 10.6022

USDJPY 114.49

EURJPY 129.87

EURCHF 1.0382

EURHKD 8.8403

AUDUSD 0.7197

USDCAD 1.2485

USDCHF 0.9152

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