Thursday 20 April 2023
Plenty of second-guessing still going on amid a raft of CB hot air/sticking wet fingers in the air and there's more today including Fed's Waller who helped stir up some USD demand on Friday. Ranging overall though still and some good two-way opportunity albeit within tight ranges as long you're not greedy and don't overanalyse.
Equities are in retreat again this morning creating a little risk-off sentiment while WTI has capped into $80.50-00 this time and broken down through the $79.50 support to test $77.80 as I type amid global economic slowdown concerns. Gold has had another dip but this held $1970 as risk sentiment softens but capping above $2000 so far. Ukraine/Russia war continues to be the main geo-political elephant in the room with ongoing US/China/Taiwan tensions in the mix too and now ongoing Middle East tensions. Oh, and North Korea always casting a shadow too.
Remember, focus on the price action and let the algos do the heavy lifting/dropping amid all the second-guessing. The important thing is to identify your preferred risk/reward entry/exit levels prior and be poised to execute.
GBPUSD: Capping into 1.2475 again in yesterday's rally after holding 1.2380 and some pips banked in the retreat with rally re-sells duly placed. Rinse n repeat while we range and I remain a rally-seller on this pair overall.Keeping some re-sells as USDJPY hedge too. UK economy continues to worry me. EURGBP: Support coming in now at 0.8800 but sellers still poised around old support of 0.8830-35 again. Expect more two-way business still. GBPJPY: Holding 167.00 this time but capping at 167.80 but sellers poised still as the risk jury remains out.
EURUSD: Yet another failure around 1.0980 amid the general USD demand after a good hold of 1.0920 and some re-sells duly placed. I remain a rally seller as my preferred side overall but equally a case for buying dips still as we continue to range. USDJPY: Capping yesterday into the decent 135.20 resistance and 134.80-00 since after the hold of support building around 134.25. I continue to favour rally sells overall with hedges elsewhere as I've mentioned previously.
More detailed analysis across a variety of pairs from mike@mspfx.co.uk
Interbank rates: 08.25 BST
GBPUSD 1.2427
EURUSD 1.0956
EURGBP 0.8816
GBPEUR 1.1341
USDJPY 134.52
GBPJPY 167.20
GBPCAD 1.6730
GBPCHF 1.1143
GBPZAR 22.6447
GBPHKD 9.6830
USDCHF 0.8964
EURCHF 0.9821
EURHKD 8.5388
AUDUSD 0.6712
NZDUSD 0.6160
USDCAD 1.3467
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