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  • Mike Paterson

Firmer risk tones as another week opens

Monday 6 June 2022

More of the same as we start another week. Equities remain underpinned as do gold and oil prices. JPY supply notable again.

UK markets open up again today to the news that PM Johnson faces a no-confidence vote this evening between 17.00-19.00 GMT. The Pound still unfazed with support coming from GBPJPY demand. Latest RBA rate decision tonight with expectations of between a 0.25-0.4% hike. A few European markets closed today for Whit Monday, including Germany.

GBPUSD: Some USD and EURGBP supply and GBPJPY demand once again helping to push the pair higher after testing 1.2475-80 again and now trading 1.2560 again. I remain poised to sell rallies but timing as ever is crucial. EURGBP: Failing into 0.8600 and now looking at 0.8550 support. More two-way business expected. GBPJPY: Still Underpinned at 163.00 now andnow pushing above 164.00 on the continued JPY supply and renewed GBP demand double whammy.

EURUSD: Testing 1.0760 again amid some USD supply this morning after a good hold of 1.0720. USDJPY: Capping above 131.00 in the extended rally but underpinned at 130.30-50 now amid the yield-led JPY supply. EURJPY: Sellers at 140.00 are now history and now testing 140.50 amid the general JPY supply still. USDCHF: Capping at 0.9640 on Friday but SNB shadow lurking in the dips still. I expect more of the same with rally sellers still poised. EURCHF: Now holding 1.0300 in the retreats and testing 1.0330 as I type. Expect some SNB smoothing but rally sellers continue to lurk in expectation of potential rate tightening.

AUDUSD: Finding a base around 0.7185 amid AUDJPY and commodity ccy demand helped by a little USD supply too after a failure into 0.7250. GBPAUD testing 1.7400 again after holding 1.7300 still. NZDUSD underpinned at 0.6500 after failing into 0.6560 on Friday. GBPNZD finding support at 1.9150 again.USDCAD: Supported at 1.2550 for the moment in the rereat from 1.25600 amid softer USD/firmer oil/CADJPY demand.

Let's continue to be careful out there.

Interbank rates: 08.30 BST

GBPUSD 1.2527

EURUSD 1.0728

EURGBP 0.8564

GBPEUR 1.1676

GBPJPY 163.64

GBPCAD 1.5787

GBPCHF 1.2078

GBPZAR 19.2850

GBPHKD 9.7842

USDJPY 130.64

EURJPY 140.17

EURCHF 1.0321

EURHKD 8.3770

AUDUSD 0.7206

USDCAD 1.2573

USDCHF 0.9620

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