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  • Writer's pictureMike Paterson

Focus turns to Fed's Powell.

Tuesday 07 March 2023

A quiet start to the week as we get ready for more volatile sessions ahead. The RBA earlier hiked rates by 25bps as expected but with some dovish tones to the statement and we've seen AUD pairs retreat. Next CB off the block is the BOC tomorrow with BOJ and US NFP data on Friday. Meanwhile US Fed Chairman Powell starts his semi-annual testimony to Congress today at 15.00 GMT with his statement potentially being released prior.

Equities have been up n down since my last update amid the fickle market sentiment ahead of Powell's testimony but generally looking firmer again this morning in Europe while WTI is enjoying itself still and now finding $80.00 support having broken up through that resistance yesterday but equally failing into $81.00 so far. Gold has found support at $1840 again but equally capping into $1855 as the tight ranges continue amid the global uncertainty. Ukraine/Russia war continues to be the main geo-political elephant in the room.

Remember, focus on the price action and let the algos do the heavy lifting/dropping. The important thing is to identify your preferred risk/reward entry/exit levels prior and be poised to execute.

GBPUSD: Duly capping into 1.2060 amid the large option interest I highlighted yesterday and retreat into 1.1990. Now capping into 1.2065 with some re-sells duly placed again. Support building at 1.2000 with large option interest supporting behind at 1.1950-75. I remain a rally seller but caution still required at these lower levels. EURGBP: Holding 0.8850 in yesterday's extended rally as GBPUSD capped on the large option interest but sellers into 0.8890 prevailing this time. GBPJPY: A support line still at 163.00-20 but sellers prevailing again into 164.00 as the uncertainty/fickle sentiment continues.

EURUSD: Holding 1.0650 and rallying on some softer USD tones/EUR demand but duly capping into 1.0700 so far . USDJPY: Capping around 136.20 as some USD supply returned but holding 135.50 in the dip so far and some pips gratefully banked again with rally re-sells planned again.

More detailed report available at

Interbank rates: 07.30 GMT

GBPUSD 1.2035

EURUSD 1.0651

EURGBP 0.8849

GBPEUR 1.1300

USDJPY 135.61

GBPJPY 163.21

GBPCAD 1.6395

GBPCHF 1.1196

GBPZAR 21.9827

GBPHKD 9.3714

EURCHF 0.9926

EURHKD 8.3078

AUDUSD 0.6760

NZDUSD 0.6219

USDCAD 1.3586

USDCHF 0.9320

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