Wednesday 25 January 2023
FX pairs still find themselves range-bound overall albeit after another lively 24 hours amid the mixed USD tones and CB/inflation second-guessing. A few new levels seen but apart from AUD which got a lift from higher than expected inflation data and USDJPY that touched 1-week highs most pairs are still contained with good two-way business to be had. US PMI came in a little stronger than expected and we saw the Greenback rise on the algo-led move before retreating.
Equities rallied then fell but tightly bound while WTI fell after the European session having failed into the $82.00 area I mentioned yesterday and in retreat still, posting $79.75 as I type. Gold finding support at $1925 this time after struggling at $1940 again amid the uncertainty so still tightly bound. Ukraine/Russia war continues to be the elephant in the room amid other geopolitical risk. Some interesting FX options interest rolling off today at 15.00 GMT
Remember, focus on the price action and let the algos do the heavy lifting/dropping. The important thing is to identify your preferred risk/reward entry/exit levels.
GBPUSD: Finally held 1.2264 in yesterday's extended retreat but capping at 1.2340 now with a significant line there developing.I remain poised to re=sell per ongoing strategy but some caution still advised amid the uncertainty. Keep an eye on GBP crosses still. EURGBP: A decent rally from 0.8800 yesterday as GBP came under pressure only to fail into 0.8850 this time before holding now at the previous resistance of 0.8820.Expect some two-way business still as core pairs and CBs make their mind up but looking underpinned overall. GBPJPY: Finding support at 160.00 eventually but capping at 161.00 in the rally this time. Good two-way pips expected still whatever your preference.
Lots more to discuss so mail mike@mspfx.co.uk for my full update each day. Traders can also subscribe to more detailed analysis and my 1-2-1 mentoring sessions.
Let's be careful out there.
Interbank rates: 08.30 GMT
GBPUSD 1.2324
EURUSD 1.0887
EURGBP 0.8833
GBPEUR 1.1320
GBPCAD 1.6460
GBPCHF 1.1367
GBPZAR 21.1785
GBPHKD 9.5973
USDJPY 130.25
EURJPY 141.80
EURCHF 1.0047
EURHKD 8.4781
AUDUSD 0.7103
NZDUSD 0.6487
USDCAD 1.3361
USDCHF 0.9228
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