Thursday 20 June 2024
Some USD demand prevailing for the moment and we're seeing reversals of recent moves with steadier risk sentiment still producing JPY selling too on the cross dips.
This morning the SNB cut rates by 25bps and highlighted again that the Franc is overvalued. Some CHF weakness as a result understandably and USDCHF has now reversed up through yesterday's technical break lower. Next up is the BOE at 12.00. I don't see a rate cut but can't rule it out. Also looking for vote change in favour of cut at very least. GBPUSD has large option contract interest at 1.2700 in play.
Equities still seeing two-way trading amid the CB/political conjecture but underpinned and adding to the better risk tones albeit with profit-takers still lurking. WTI still seeing good support and been up further to test $81.20 on the better risk sentiment after a hold of $88.40. Gold now finding a base at $2325 but failing at $2345 this time. Dip demand should remain but profit-takers still poised.
GBPUSD: Support coming in at 1.2690-00 again his morning with large option interest in play through the BOE fallout after failing at 1.2730-40 yesterday with EURGBP and GBPJPY flows still in play too.EURGBP: Holding 0.8435 this morning after capping into 0.8455 again amid the tight ranges elsewhere. EU politics and BOE today still casting a shadow. GBPJPY: Holding 200.80 amid the firmer risk sentiment and now 201.20 providing core pair dip demand too.
EURUSD: Capping at 1.0735-45 again with a hold of 1.0710-20 again so far as we range tightly.Cross flows in play. USDJPY: A decent rally amid the USD demand/JPY supply double whammy and now up through the 158.20-30 resistance with support at 157.80-00. MOF/BOJ will be watching closely again.
Traders - For more detailed analysis across a larger number of FX pairs including market order flows and options expiries email mike@mspfx.co.uk
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