Wednesday 29 March
nother up and down day yesterday but we're seeing some better risk sentiment prevailing overall with equity and oil price dip demand again to help bring a few JPY sellers to the table led by USDJPY after being again supported by that decent 130.30-50 area. All very strange given month-end flow signals were JPY positive but perhaps all been done in recent days. The Spot-date month-end 4pm London fix will be interesting.
Softer Aussie CPI data sparks the RBA pause or hike question for next week as the CB second-guessing game continues.
Equities on the rise again while WTI found a base this time into $72.25 then $73.00 but capping at $74.00 as I type. Gold has seen a retreat from $1975 this time amid the better risk tones but holding $1950-60 so far. Ukraine/Russia war continues to be the main geo-political elephant in the room with ongoing US/China tensions in the mix too currently.
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 prior and be poised to execute.
GBPUSD: Capping into 1.2350 again after a decent rally from 1.2280 yesterday.I remain a rally seller still and I've resold small in latest rally for an interest as I think we're still ranging overall. EURGBP: Testing 0.8800-05 again as I type after a good hold of 0.8780 this time. Expect some more two-way trading as core pairs and risk both fluctuate. GBPJPY: Support line at 161.00 and now 162.00 amid the better risk tones and JPY supply. Capping into 162.75 as markets remain fickle.
EURUSD: Decent support building yesterday at 1.01815 and again this morning after capping at 1.0850 and I remain a rally seller as my preferred side. USDJPY: Underpinned at 130.30-50 per my comments above and a solid rally helped by better risk JPY supply but failing at 132.10 so far.
More analysis on a variety of pairs from mike@mspfx.co.uk
Interbank rates: 08.15 GMT
GBPUSD 1.2323
EURUSD 1.0832
EURGBP 0.8788
GBPEUR 1.1378
USDJPY 132.00
GBPJPY 162.62
GBPCAD 1.6755
GBPCHF 1.1317
GBPZAR 22.3676
GBPHKD 9.5973
EURCHF 0.9964
EURHKD 8.4332
AUDUSD 0.6675
NZDUSD 0.6233
USDCAD 1.3609
USDCHF 0.9200
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