Thursday 24 August 2023
Not a lot to report as markets still have their eye on the annual Jackson Hole gathering this weekend and with US Fed Chairman Powell speaking tomorrow at 10.00 EST we've seen FX pairs continuing to range. Other Central Bank heads on the agenda too but will we know any more policy specifics by Monday? Probably not.
Equities have had another rally in NY trading but off their highs as European trading gets underway while WTI is also off its highs after a further retreat posting fresh recent lows of $77.60 then capping at $79.50 as the uncertainty continues. Gold finding support around $1900 then $1915 but natural sellers prevailing between $1920-25 as the jury remains out and tight ranges prevail. Geopolitical concerns still very much a threat to market stability with focus on Ukraine/Russia but also tension in the Middle East among other areas of conflict.
GBPUSD: Yesterday's retreat extended into 1.2615 but then a decent rally to 1.2730 amid some USD supply and firmer risk GBPJPY demand amid the equity rally. I remain bearish on the UK and GBP overall. EURGBP: Finding a cap at 0.8565 but holding 0.8530 after the UK and EZ PMI data flurry yesterday with more two-way expected overall as core pairs make their mind up.GBPJPY: Capping at 184.80 after the firmer risk rally from 183.50 this time. Sellers will remain poised as risk remains fragile.
EURUSD: Holding support into 1.0800 wiuth that large option interest between 1.0800-35 that I warned about yesterday very much in play Capping at 1.0875 since. I remain a rally seller. USDJPY: Capping at 145.40 now after yesterday's extended retreat into 144.50-60 after the break through 145.00 triggered some stops. I remain a rally seller as preferred side overall but with patience a virtue as ever. I still regard the risk being to the downside.
More detailed analysis across a variety of pairs plus 1-2-1 mentoring services for traders from mike@mspfx.co.uk
Interbank rates: 08.46 BST
GBPUSD 1.2710
EURUSD 1.0860
EURGBP 0.8543
GBPEUR 1.1704
USDJPY 145.30
GBPJPY 184.64
GBPCAD 1.7210
GBPCHF 1.1160
GBPZAR 23.6180
GBPHKD 9.9011
USDCHF 0.8791
EURCHF 0.9548
EURHKD 8.4625
AUDUSD 0.6462
NZDUSD 0.5953
USDCAD 1.3531
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