Firmer risk tones and Greenback prevailing again
Thursday 24 March 2022
Ukraine still should remain everyone's focus but markets have their own agenda and the Greenback has once again found some good underpinning as have equity markets while Russia's relentless bombardment continues. Gold and oil are finding dip support still while FX pairs continue with their fragile/fickle price action but JPY supply notable as USDJPY continues to rise. Commodity currencies feeling some love again.
GBPUSD: Finding a base at 1.3150 (where we also have some decent option interest today) after failing around 1.3200. I remain a rally seller overall a while keeping an eye on EURGBP and GBPJPY as always. EURGBP: Decent base at 0.8315-20 now and testing 0.8350-60 pivot and helping to cap GBPUSD. More two-way business expected.
GBPJPY: Through the roof in my absence on surging USDJPY/better risk JPY supply double whammy and now finding support at 160.00 in latest retreat after failure at 160.70. Seems the jury is no longer out.......
EURUSD: Holding 1.0970 in latest retreat but rally has failed aboe 1.1000 so far. USDJPY: I turn my back for 2-3 days and look what happens! 121.75 highs so far. EURJPY: Support now at 133.00-30 but failure at 133.80 so far as core pairs find rally sellers. USDCHF: Capping at 0.9350 again but holding 0.9320 in the latest retreat as EURCHF remains under pressure but with SNB shadow lurking amid the fragile backdrop. General CHF demand still notable which the SNB highlighted again as they left rates on hold earlier. EURCHF: Support/bids at 1.0230 tested but holding for the moment with SNB lurking in the dips but equally rally sellers poised still though as I've been warning.
AUDUSD: Testing 0.7465 bids after the rally above 0.7500 yesterday amid the return of some commodity-ccy demand.
USDCAD: Holding 1.2550-60 as we continue to range with sellers poised at 1.2580-00. Two-way business expected amid all the uncertainty still.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.50 GMT