Wednesday 27 September 2023
Still USD demand prevailing amid rising US bond yields with yesterday's verbal intervention by the Japanese MOF doing little to deter USDJPY buyers with the widely touted key 150.00 level still very much in sight. In China the PBOC are desperately still trying the stem the Yuan selling but coming second. Meanwhile markets still trying to evaluate/second-guess last week's CB action and rhetoric.
Equities still looking a little soggy after yesterday's fall but once agin off their lows in early European trading while WTI is capped at $91.00 again after holding $89.00 this time as the jury remains out. Gold finding support around $1895 this time after failing to make recovery above $1910 and breaking down through $1900 with natural sellers ever poised. Geopolitical concerns still very much a threat to market stability with focus on increasing Ukraine/Russia tension but also the Middle East among other areas of conflict.
GBPUSD: 1.2180 providing the cap now as we head ever lower amid the relentless USD demand and softer-risk GBPJPY supply. Keeping core shorts still and I remain poised for further rally re-sells. EURGBP: Holding around 0.8685 now in retreats but capping between 0.8700-10 still. More two-way expected overall but should remain underpinned for the moment. GBPJPY: Capped at 181.30 amid the softer risk tones and core pairs finding rally sellers but a base around 180.90a for the moment. Sellers ever poised as I've been warning.
EURUSD: Capping into 1.0600 them 1.0580 this time amid the general USD demand but holding 1.0550 so far. I remain a rally seller overall. Options in play again should we rally. USDJPY: A good hold of 148.80 after falling yesterday on the Suzuki verbal threats but capping at 149.15 as the ongoing fears of MOF/BOJ intervention continue. I remain a rally seller as preferred side overall at these elevated levels but with patience a virtue as ever.
More detailed analysis across a variety of pairs and 1-2-1 mentoring sessions for traders from mike@mspfx.co.uk
Interbank rates: 07.53 BST
GBPUSD 1.2154
EURUSD 1.0568
EURGBP 0.8693
GBPEUR 1.1502
USDJPY 149.04
GBPJPY 181.14
GBPCAD 1.6428
GBPCHF 1.1134
GBPZAR 23.1482
GBPHKD 9.4648
USDCHF 0.9163
EURCHF 0.9685
EURHKD 8.2304
AUDUSD 0.6383
NZDUSD 0.5937
USDCAD 1.3520
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