Tuesday 24 October 2023
There's no let-up in the Middle East tensions but softer US bond yields after touching fresh highs yesterday has seen a small sell-off in the Greenback and risk appetite a little firmer despite Israel/Hamas conflict concerns. USDJPY finally gave up on 150.00 but these markets remain ever-fickle and we're seeing some reverse moves as European trading gets fully underway.
Equities had a better time of it yesterday amid the softer yields/firmer risk tones and finding a bit of support again this morning after another rally ran out of steam with the jury still deliberating. WTI holding $85.40-50 this morning after a retreat from $86.10 this time amid the uncertain global economic picture too. Gold has found support around $1975 this time after capping at $1981 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.
GBPUSD: Support now at 1.2230 after yesterday's break higher amid the USD supply but rallies have capped above 1.2280. I remain poised for further re-sells when momentum fades. EURGBP: Testing 0.8690-00 again as I type after capping at 0.8720 agaain as core pairs fluctuate. Expect more of the same. GBPJPY: Holding 183.00 as I type after capping at 183.70 after the better-risk rally but with sellers ever poised still amid the fragile risk.
EURUSD: 1.0650 support being tested at the moment after capping at 1.0695 as we continue to range amid all the uncertainty. I remain a rally seller overall. USDJPY: 149.30 the current base with rallies capping into 150.00 again then 149.75 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.
For more detailed analysis across a variety of pairs email mike@mspfx.co.uk
Interbank rates: 08.32 BST
GBPUSD 1.2267
EURUSD 1.0665
EURGBP 0.8693
GBPEUR 1.1501
USDJPY 149.43
GBPJPY 183.28
GBPCAD 1.6796
GBPCHF 1.0930
GBPZAR 23.2812
GBPHKD 9.5505
USDCHF 0.8911
EURCHF 0.9500
EURHKD 8.3048
AUDUSD 0.6371
NZDUSD 0.5865
USDCAD 1.3677
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