Monday 23 October 2023
Middle East tensions continue to dominate and Friday saw another sell-off in equities bringing with it ongoing risk-off safe-haven demand. We've seen some steadier tones in Asia and early Europe with diplomatic talks continuing, a tiny bit of humanitarian aid getting through but a few boots on the ground in Gaza and the bombing continues. USDJPY still banging against 150.00 prompting MOF/BOJ intervention fears with JPY and CHF demand overall still helping to cap core pairs too albeit softening a little this morning.
Equities are turning lower again as I type again after a small upturn in Asisa following Friday's rapid retreat amid the softer risk tones. WTI holding $86.65 this morning after Firday's retreat from $89.50 with the jury still out amid the uncertain global economic picture too. Gold has found support around $1965-70 this time amid the fragile risk tones after capping at $1985 on Friday with natural sellers ever poised still. Geopolitical concerns still very much a threat to market stability with focus on increasing Ukraine/Russia tension and now with the Middle East sadly to the fore.
GBPUSD: Friday's test of the 1.2080-00 support again has provided a decent platform, consolidated at 1.2140-50 since but rallies have been weak still amid general USD demand and soggy GBP tones.I remain poised for further re-sells when momentum fades.
EURGBP: Still underpinned around 0.8700 as GBP remains under pressure after capping at 0.8720 for the moment. GBPJPY: Holding 182.00-10 but capping at 182.50 again with rally sellers ever poised still amid the fragile risk.
EURUSD: 1.0570 support this time after capping at 1.0600 but testing the top side again as we continue to range tightly amid all the uncertainty. I remain a rally seller overall. Decent size options today/tomorrow should helping to cap. USDJPY: 149.75 the current base but rallies capping into 150.00 again with MOF intervention fears still there and risk-off JPY demand plus some option interest again. I remain a rally seller as preferred side overall at these elevated levels but with patience a virtue as ever.
For more detailed analysis across a variety of pairs email mike@mspfx.co.uk
Interbank rates: 08.16 BST
GBPUSD 1.2160
EURUSD 1.0581
EURGBP 0.8702
GBPEUR 1.1491
USDJPY 149.93
GBPJPY 182.32
GBPCAD 1.6709
GBPCHF 1.0862
GBPZAR 23.2152
GBPHKD 9.4804
USDCHF 0.8932
EURCHF 0.9453
EURHKD 8.2438
AUDUSD 0.6306
NZDUSD 0.5821
USDCAD 1.3723
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