Friday 27 October 2023
We've seen a little firmer risk appetite helped by some better earnings data from US tech companies but the Middle East back-story continues to cast more than a shadow with no sign of ceasefire any time soon and with the US striking on Iran-backed targets in Syria. Some USD supply returning but all tightly bound still. US PCE data on the slate today after some strong US GDP numbers yesterday.
Equities have been up and down amid the variable risk sentiment but a little steadier this morning. WTI fell then rallied from $82.50 but capping at $84.50 so far amid the uncertain global economic picture too. Some week-end risk if Israel does begin its march into Gaza. Gold has found support around $1970 this time but capping at $1991 again 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: Some support forming again between 1.2080-00 amid the USD supply but capping at 1.2140 and currently in retreat again. I remain poised for further entries when momentum fades. Options in play today at 1.2150 helping to cap. EURGBP: Holding 0.8690 in the latest retreat and now up to 0.8720 as we continue to range tightly amid core pair fluctuations. GBPJPY: Holding 181.80 this morning after capping at 182.50 with sellers ever poised still amid the fragile risk.
EURUSD: 1.05325 support yesterday in the end but capping at 1.0570 amid the USD demand before finding a base at 1.0550 this morning as some USD supply returns. I remain a rally seller overall. Options in play. USDJPY: 150.00 the current base with large option interest there today helping to contain the range which is capping at 150.30-40 for the moment. MOF/BOJ intervention fears still there. I remain a rally seller as preferred side overall at these elevated levels but with patience a virtue as ever. Re-sells hedged vs GBPUSD/EURUSD.
For more detailed analysis across a variety of pairs email mike@mspfx.co.uk
Interbank rates: 08.43 BST
GBPUSD 1.2116
EURUSD 1.0555
EURGBP 0.8711
GBPEUR 1.1478
USDJPY 150.20
GBPJPY 181.97
GBPCAD 1.6725
GBPCHF 1.0915
GBPZAR 22.8990
GBPHKD 9.4415
USDCHF 0.8997
EURCHF 0.9495
EURHKD 8.2245
AUDUSD 0.6340
NZDUSD 0.5817
USDCAD 1.3813
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