Friday 5 April 2024
After the USD correction lower we've seen FX pairs run out of steam with USDJPY still helping to keep a lid on things at the key 151.80-00 area and JPY demand returning amid risk aversion returning to help cap core pairs too."Everything is relative and for me little has really changed" as I warned yesterday and we've duly seen some correction elsewhere as markets await the key US NFP jobs/wages data at 12.30 GMT
The Ukraine/Russia war and Middle East Israel/Hamas/Houthi/Hezbollah/Red Sea tensions still cast their own shadow sadly and rising fears added to yesterday's correction with some risk aversion back in play.
Equities have based again after another sharp retreat in NY on the renewed risk-off tones while WTI has rallied on the increased Middle East tensions but capped into $87.00 and back down to $86.10 as I type as the second-guessing on Red Sea/Gaza, CBs and global economy continue.Gold has posted fresh record highs of $2305 as the shiny stuff retains its allure but capping there and some profit-taking taken it back down to test $2265.
GBPUSD: A cap duly made around 1.2680 and retreat to test 1.2600-10 support before a bounce to 1.2625 as I type. I remain a rally seller. EURGBP: Testing 0.8585 again as I type on the GBP retreat helped by the risk off GBPJPY supply after holding 0.8570 amid the ongoing ECB/BOE rate cut conjecture too. GBPJPY: Capped at 192.20 amid the GBPJPY supply returning on softer risk tones but holding 190.60 this time. Sellers will remain poised but some caution still required for the moment.
EURUSD: Support around the pivotal 1.0820-30 after capping into 1.0880 as we continue to range. I remain a rally seller as my preferred side.USDJPY: Duly capping around 151.80 and an extended retreat amid the JPY demand but holding 150.80 amid some USD demand too. I still prefer to play from short-side but once again expecting dip demand for the moment.
Traders - For more detailed analysis across a larger number of FX pairs including market order flows and options expiries email mike@mspfx.co.uk
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