Thursday 28 September 2023
USD demand still notable amid the rising US bond yields and month-end flows with markets still trying to evaluate/second-guess after last week's CB action and rhetoric. Inflation data out of Germany so far this morning indicates some decent retreat and that's weighing on EUR sentiment. US Fed Chairman Powell speaks later at 20.00 GMT.
Equities fell again amid the bond selling again once US markets got going before rallying into the close but off their highs in early European trading while WTI remaind underpinned and has rallied further after holding $91.80-00 this time before failing above $94.00 but remains a real problem to global economic recovery. Gold finding support around $1872 this time after failing to make recovery above $1890 amid the US bond rout 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 still after a further retreat into 1.2100 amid the relentless USD demand but heading higher this morning helped by a little GBPJPY demand with USDJPY underpinned and some EURGBP supply returning. Keeping core shorts still and I remain poised for further rally re-sells. EURGBP: Holding around 0.8640 in the renewed retreat amid softer German inflation data after cappingat 0.8670 yesterday. More two-way business expected. GBPJPY: Capped at 181.85 this morning after a decent rally from 181.00 amid some better risk tones and core pairs finding dip demand. Sellers ever poised though.
EURUSD: Capping into 1.0530 yesterday and again this morning after the extended retreat to 1.0485 amid the general USD demand. I remain a rally seller overall. Large options tomorrow and will be in play. USDJPY: A good hold of 149.20 this time after capping at 149.70 as the ongoing fears of MOF/BOJ intervention into 150.00 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: 08.48 BST
GBPUSD 1.2153
EURUSD 1.0506
EURGBP 0.8646
GBPEUR 1.1560
USDJPY 149.29
GBPJPY 181.43
GBPCAD 1.6420
GBPCHF 1.1183
GBPZAR 23.4110
GBPHKD 9.4726
USDCHF 0.9204
EURCHF 0.9669
EURHKD 8.1943
AUDUSD 0.6368
NZDUSD 0.5937
USDCAD 1.3509
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