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  • Writer's pictureMike Paterson

Some US Dollar supply returns

Thursday 9 March 2023

Yesterday the second part of US Fed Chair Powell's testimony saw a little more dovish tone as he seemed to pull back from the 0.5% rate hike possibilities but sticking with the data-dependent stance overall so can't be ruled out. The Greenback has retreated a little with USDJPY falling back notably amid some JPY demand ahead of tonight's BOJ policy decisions.

The BOC left rates on hold as expected but seemded to ignore inflationary pressures elsewhere and maintained dovish tones sending CAD lower amid oil price falls too. US NFP data tomorrow is eagerly awaited still for further FOMC clues. Could it be the 11th straight gain ?

Equities fell then rose then dipped again amid the ongoing fickle market sentiment while WTI capped into $77.50 and fallen to $76.20 so far as risk tones remain soft. Gold has found support at $1800-10 still having capped at $1825 as the tight ranges continue amid the global uncertainty. Ukraine/Russia war continues to be the main geo-political elephant in the room with Russia upping its shelling game overnight. US/China tensions in the mix too.

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 1.1900 after the hold of 1.1800 (where I warned of bids building yesterday) amid some USD supply returning and some pips gratefully banked/re-sells placed per ongoing strategy. I remain a rally seller.EURGBP: Capped into 0.8925-30 again but support/bids still building 0.8880-00. Expect some more two-way trading as core pairs fluctuate. GBPJPY: A support line now at 161.60 but sellers prevailing again into 163.00 as the uncertainty/fickle sentiment continues and JPY demand prevails on the crosses.

EURUSD: Holding 1.0525-30 again amid some USD supply returning and some pips duly banked but capping into 1.0575 since.I remain a rally seller as my preferred side still.USDJPY: Testing 136.00-20 this morning after a solid fall from 137.40 amid the USD supply and JPY demand ahead of BOJ.

A more detailed report available if you email

Interbank rates: 08.48 GMT

GBPUSD 1.1864

EURUSD 1.0555

EURGBP 0.8895

GBPEUR 1.1240

USDJPY 136.40

GBPJPY 161.81

GBPCAD 1.6395

GBPCHF 1.1122

GBPZAR 22.0217

GBPHKD 9.2467

EURCHF 0.9912

EURHKD 8.2266

AUDUSD 0.6611

NZDUSD 0.6121

USDCAD 1.3797

USDCHF 0.9390

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