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  • Mike Paterson

All eyes on US CPI data tomorrow

Wednesday 11 January 2023

US Fed Chair Powell declined to offer any further clues on monetary policy yesterday at the Riksbank event and that left FOMC hawks a little disappointed. Cue some better risk tones to equity and commodity markets but the Greenback has been ranging still with all eyes on the US CPI data coming tomorrow at 13.30 GMT. Some JPY supply notable again for the moment.

WTI crude is finding a good base around $74 while Gold is still underpinned and nudging higher to post fresh highs of $1886. China continue with their re-opening boost plans but I remain cynical amid the rapidly rising COVID cases and general global economic downturn. Ukraine/Russia war continues to be the elephant in the room amid other geopolitical risk.

GBPUSD: A good cap around 1.2200 still but holding 1.2100 in yesterday's retreat.I remain poised to re=sell per ongoing strategy. EURGBP still helping to cap but some GBPJPY demand to counter. EURGBP: 0.8830 still providing good support amid some general EURUSD demand but ranging still as core pairs make their mind up. GBPJPY: 160.50 proving a decent support area now amid some firmer risk tones but capping above 161.00 and the jury remains out.

EURUSD: Flatlining for the moment with a solid hold of the 1.0710-20 area but failing above 1.0750. I remain a rally-seller in principle but some caution required atm of course with some general EUR appearing. Still don't over think it though. USDJPY: Solid support into 131,50 then 132.00 in the latest retreats and firmer risk tones plus some USD demand lifting up through 132.50. EURJPY: We've been up to test 142.50 after a good hold of 141.75 then 142.00 area with core pairs both finding dip demand amid the better risk tones. USDCHF: 0.9200-50 covers this pair for the moment with CHF demand still notable but EURCHF finding dip demand too amid general EUR demand. SNB will be watching closely still. EURCHF: Support at 0.9880 and now through 0.9900 amid the EUR demand but tempered by CHF demand too and finding progress higher difficult atm.

AUDUSD: Good hold of 0.6860-80 and a small bounce through 0.6900 with AUDJPY buying notable again amid decent CPI and retails data but equally sellers poised 0.6930-50 still as the jury remains out. Still Keep an eye on AUD crosses for further clues. NZDUSD: Support still coming in at 0.6350 but failing into 0.6400 again. Delicately poised. USDCAD: Flatlining still amid the fickle USD and oil price. Support at 1.3380 then 1.3400 but resistance 1.3425-50 still.Expect more two-way business overall.

Traders can take advantage from my daily emails, far more detailed than this summary aimed at my physical delivery clients, plus 1-2-1 mentoring sessions. Contact me for more details.

Interbank rates: 08.40 GMT

GBPUSD 1.2150

EURUSD 1.0738

EURGBP 0.8840

GBPEUR 1.1310

GBPJPY 160.96

GBPCAD 1.6294

GBPCHF 1.1202

GBPZAR 20.6485

GBPHKD 9.4648

USDJPY 132.50

EURJPY 142.31

EURCHF 0.9900

EURHKD 8.3686

AUDUSD 0.6902

NZDUSD 0.6367

USDCAD 1.3427

USDCHF 0.9221

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