Friday 8 September 2023
USD demand still prevailing overall but off its highs with USDJPY having some fun and games and a sharp drop in Asia to 146.60 ahead of some verbal intervention commnents from the Japanese Ministry of Finance prompting speculation that certain players might have had the heads-up. Either way it's now back up to 147.35 as I type.
Pressure on the Chinese Yuan giving cause for concern still and posting its lowest levels since 2007.BOC Governor Macklem yesterday backed up the hawkish/cautious tones from Wednesday's policy statement but markets aren't convinced. G20 meeting this weekend but little of note expected.
Equities are rallying off yesterday's lows but dipping again as I type while the jury remains out and WTI capped around $87.20 this time but holding $85.75 in the retreat. Gold finding support around $1915 again after capping above $1925 as the jury remains out and tight ranges prevail. Geopolitical concerns still very much a threat to market stability with focus on increasing Ukraine/Russia tension but also the Middle East among other areas of conflict.
GBPUSD: 1.2440-50 providing the base so far but capping at 1.2510 yesterday and this morning as USD demand prevails and GBP supply comes from some GBPJPY selling and EURGBP demand. I remain bearish on the UK and GBP overall. EURGBP: Holding 0.8570-75 in the retreat from 0.8600. More two-way expected overall as core pairs make their mind up but should stay underpinned on CB expectation. GBPJPY: Capped at 184.20 yesterday and a decent retreat to test 183.00 before rallying back above 184.00 amid the USDJPY fun and games. Sellers ever poised as risk remains fragile as I've been warning.
EURUSD: A hold of 1.0680 yesterday per my tweets after finally breaking down through 1.0700 but capping now at 1.0730. I remain a rally seller. USDJPY: Capping at 147.60 yesterday and then that sharp drop to 146.60 amid verbal intervention volatility before rallying to 147.35 as I type. I remain a rally seller as preferred side overall with patience a virtue as ever.
More detailed analysis across a variety of pairs and 1-2-1 mentoring sessions for traders from mike@mspfx.co.uk
Interbank rates: 08.17 BST
GBPUSD 1.2485
EURUSD 1.0714
EURGBP 0.8581
GBPEUR 1.1652
USDJPY 147.32
GBPJPY 183.95
GBPCAD 1.7051
GBPCHF 1.1134
GBPZAR 23.8270
GBPHKD 9.7219
USDCHF 0.8906
EURCHF 0.9544
EURHKD 8.3436
AUDUSD 0.6396
NZDUSD 0.5902
USDCAD 1.3663
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