US CPI data in focus

Mike Paterson
Jan 11, 2024
2 min read

Thursday 11 January 2024

All eyes on today's US CPI data with the weekly jobs report out at the some time too at 13.30 GMT and we've seen some USD supply again amid softer US bond yields but all ranging still for the moment. Better risk tones overall has brough some JPY supply too.

Meanwhile the Ukraine/Russia war and the Red Sea disruptions/fallout continue to grab headlines while the ongoing Middle East Israel/Hamas back-story casts its own shadow over markets and yet, imnho, to reveal its full impact.

Equities have rallied amid the better risk tones but with the jury still out on the speed of cuts by FOMC et al. WTI found support at $71.00 again amid the Red Sea concerns but capping at $73.50 and currently $72.50 with sellers poised still. Gold ranging tightly still now between $2022-42 for the moment as the jury remains out.

GBPUSD: Capping into 1.2775 this morning after holding 1.2700-10 yesterday amid some USD supply and GBPJPY demand. Some re-sells placed in the latest rally and I remain poised for further sells when momentum fades but patience still required.

EURGBP: Capping at 0.8620 yet again and testing 0.8595-00 in the latest retreat as the CB jury remains out. GBPJPY: Better risk tones saw the pair hold 184.50 then 185.00 and now back up through 185.50. We can expect rally sellers to remain poised amid all the uncertainty in these ever fickle markets but underpinned for the moment.

EURUSD: Support coming in at 1.0930 but capping at 1.0990 this time as we wait on US CPI. I remain a rally seller. USDJPY: Finding support between 144.80-00 yesterday firmer risk JPY supply but capping at 145.80 so far albeit holding 145.25 since. I remain a rally seller as preferred side overall and remain poised when momentum fades but caution still required for the moment.

For more detailed analysis across a variety of pairs email mike@mspfx.co.uk

Interbank rates: 08.50 GMT

GBPUSD 1.2761

EURUSD 1.0974

EURGBP 0.8600

GBPEUR 1.1626

USDJPY 145.49

GBPJPY 185.64

GBPCAD 1.7060

GBPCHF 1.0836

GBPZAR 23.7280

GBPHKD 9.9400