Dark and uncertain times still as markets wait on ECB
Thursday 10 March 2022
We continue to live in an uncertain world and markets continue to reflect all of that and more. All things relative of course in these sad and sorry times but focus today veers toward the latest policy anouncement from the ECB with them having a huge amount to consider.
Meanwhile equity markets remain underpinned while gold and oil continue their sharp retreat and now $1978 and $112.80 from the recent heady highs albeit it from their overnight lows. Keep up at the back! Forex pairs continue their fragile price action.
GBPUSD Finding support at 1.3140 after a failure into 1.3200. EURGBP: Decent support now at 0.8380 after the failure above 0.8420 with sellers poised as I warned. ECB in focus. GBPJPY: Bouncing from 152.30 this morning after failure into 153.00 and the jury remains out.
EURUSD: Another decent rally and posting highs of 1.1080 from a fresh base of 1.1040 but a lively morning so far as we wait on ECB. USDJPY: 115.80 now supporting amid the better risk sentiment but equally sellers remain poised at 116.20 per my orderboard yesterday and prevailing so far. EURJPY: Support now at 127.80 after failure into 128.50 in the latest rally in these ever fickle times.USDCHF: Holding 0.9260 in the latest retreat after capping at 0.9285 with EURCHF rally also failing at 1.0265 but with SNB shadow lurking amid the fragile backdrop.EURCHF: Support now at 1.0225 after posting highs of 1.0265 with SNB support in the dips. Rally sellers poised still though and ECB shadow still being cast.
AUDUSD: Holding 0.7300 and higher again now at 0.7334 helped by the better risk AUDJPY and AUDCHF demand with softer USD tones. USDCAD: Capping at 1.2840 but holding 1.2800 amid the variable oil price, risk and USD tones.I still think we'll see some two-way business amid all the uncertainty.Caution required though with so many variables.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.50 GMT