Tuesday 9 July 2024
Yesterday brought some USD supply only to see that fade by the end of the day but general ongoing JPY supply keeping core pairs supported once again in the dips. European equities have given up their gains too as the jury remains out and second-guessing continues.
Talking of which today brings the latest testimony to US Congress from Fed Chair Powell at 14.00 GMT book-ended by speeches from Fed heads Barr and Bowman. Little of note on the data slate.
US equity markets remain underpinned albeit with sellers still lurking and European equities have reversed yesterday's gain helping to put a small wobble under risk sentiment. WTI capping between $82.00-20 on a further reaction to weekend reports of lower US gasoline use and now testing $81.45 in the additional retreat. Gold fell again in a further reaction to news that China didn't buy gold in June in a continuation of the freeze on reserves from May that I noted here at the time. Dip demand should remain but profit-takers/sellers still poised.
GBPUSD: Support coming in at 1.2790-00 again this morning after yesterday's failure at 1.2845 amid the renewed USD demand, GBPJPY rally supply plus some EURGBP demand too. More two-way expected as we continue to range. EURGBP: Tightly bound 0.8445-60 with EU and UK politics still casting a shadow along with ECB/BOE rate cut conjecture. GBPJPY: Following USDJPY up and down again amid the variable risk tones. Holding 205.80-00 as I type in the retreat this time after capping at 206.30. Sellers will remain poised but underpinned overall still for the moment.
EURUSD: Yesterday's rally failed at 1.0840-50 again and we've now retreated to 1.0815 amid the general USD demand and CAC 40 reversal lower. USDJPY: Support coming in at 160.70 this time after failing above 161.10 again helped by the return of some JPY demand amid softer risk tones. MOF/BOJ intervention fears remain but not putting off dip buyers still.
Traders - For more detailed analysis across a larger number of FX pairs including market order flows and options expiries email mike@mspfx.co.uk
Comments