Tightly bound again as US CPI looms

Tuesday 9 April 2024

Yes folks, same ol' story again with markets ranging tightly ahead of key US CPI data tomorrow and little else of note going on. RBNZ and BOC policy decisions tomorrow too then ECB the next Central Bank off the rank on Thursday along with US PPI.

BOJ Governor Ueda has been spouting forth again but nothing that we don't really aleady know and USDJPY remains capped at 152.00 but underpinned helped by firmer risk tone JPY supply. Quiet data day ahead but the Ukraine/Russia war and Middle East Israel/Hamas/Houthi/Hezbollah/Red Sea tensions still cast their own shadow.

Equities remain underpinned while WTI has traded tightly amid the Middle East unknowns and capped above $86.50 but holding $84.80 as the second-guessing continues. Gold has posted fresh record highs of $2356 as the shiny stuff retains its allure amid inflation fears and reports of Central Bank buying again anbd remains underpinned up there as I type.

GBPUSD: A cap around 1.2665 this time after a hold of 1.2600-10 helped by GBPJPY demand. I remain a rally seller as we continue to range overall. EURGBP: Failing around 0.8585 again but holding 0.8575 amid the ongoing ECB/BOE rate cut conjecture. ECB looming on Thursday. GBPJPY: Capped at 192.35 after holding 191.80-00 amid the better risk tones and core pair dip demand. Sellers will remain poised but some caution still required for the moment.

EURUSD: Support around 1.0830 but capping into 1.0865 as we continue to range. I remain a rally seller as my preferred side. ECB looming Thursday. USDJPY: Still testing 151.80-00 amid the better-risk tones and holding 151.70 amid the JPY supply. I still prefer to play from short-side but once again expecting dip demand for the moment.

Traders - For more detailed analysis across a larger number of FX pairs including market order flows and options expiries email mike@mspfx.co.uk