Tuesday 17 October 2023
Risk sentiment remains fragile amid the Middle East tensions but certain political developments giving some hope and markets generally steadier for the moment. US bond yield on the rise again and that's helped to underpin the Greenback but we're still seeing capped JPY and CHF crosses and therefore core pairs.
NZ inflation data come in on the lower side which gave NZD a kick lower after its election-led respite yesterday but hawkish RBA Minutes sent AUD the other way. UK wages data out earlier had little impact with the rest of the numbers out on 24 th. Fed's Williams, Bowman, Barkin and Kashkari plus BOE's Dhingra up to the rostrum later..
Equities had a better time of it yesterday with some encouraging on the Middle East and steadier in Asia/early Europe since. WTI found support around $85.00 in its latest retreat after capping ay $87.00 with the jury still out amid the uncertain ME and global economic picture too. Gold has found support around $1910-15 after the failure at $1930 with natural sellers ever poised still. Geopolitical concerns still very much a threat to market stability with focus on increasing Ukraine/Russia tension and now with the Middle East sadly to the fore. Putin currently visiting China.
GBPUSD: Capping around 1.2220 again yesterday after a hold of 1.2150 and another decent retreat into 1.2160 since amid the USD demnd. I remain poised for further re-sells when momentum fades. EURGBP: Currently locked in to an even tighter 0.8640-70 range. More two-way business expected as core pairs fluctuate. GBPJPY: Holding 181.80 in yesterday's retreat and a rally to 182.80 the firmer risk tones but with rally sellers ever poised still.
EURUSD: 1.0525 support area this time with that ongoing option interest at 1.0500 in play but capping at 1.0565 so far. I remain a rally seller overall. USDJPY: 149.40-50 holding helped by some better risk JPY supply but rallies capping around 149.75 this time with MOF intervention fears still there. 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: 08.39 BST
GBPUSD 1.2174
EURUSD 1.0547
EURGBP 0.8663
GBPEUR 1.1540
USDJPY 149.56
GBPJPY 182.07
GBPCAD 1.6573
GBPCHF 1.0970
GBPZAR 22.8704
GBPHKD 9.4804
USDCHF 0.9013
EURCHF 0.9505
EURHKD 8.2157
AUDUSD 0.6358
NZDUSD 0.5896
USDCAD 1.3623
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