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  • Writer's pictureMike Paterson

Greenback being grabbed again

Thursday 25 May 2023

Still no deal yet from the Biden/McCarthy US debt ceiling talks so there's still some concerns understandably but that's not stopped the Greenback from making further gains helped by some hawkish/cautious FOMC Minutes and comments from Fed's Waller. US bond yields nudging higher and expectations of FOMC rate hikes all in the mix.

US Initial jobless claims and GDP/PCE will be keenly awaited today at 12.30 GMT. German Q1 final GDP came in at -0.3% vs 0.0% expected and will give the ECB further food for thought.

Equities are in retreat again this morning as I type after yesterday's fall and WTI has capped at $74.40 having broken up above the key $73.80-00 resistance yesterday and now testing that area as support amid the ongoing global economic growth concerns. Gold is trading tightly still amid the generally softer risk sentiment and still holding the strong $1950-55 support.Increasing tensions in the Ukraine/Russia war continue to be the elephant in the room as the world remains a fragile place.

GBPUSD: Failure at 1.2430 yesterday amid the USD demand and some risk-off GBPJPY supply again. Now finding support at 1.2330 and some pips banked along the way.I remain a rally seller as my preferred side. Some options in play. EURGBP: Capping at 0.8705 yesterday and now testing 0.8680 again as core pairs range still. Expect some two-way business overall again. GBPJPY: Capping at 172.50 this time after holding 171.20 yesterday in the dip. Rally sellers ever-poised but some demand expected too for the moment as USDJPY remains underpinned.

EURUSD: Capping into 1.0800 again yesterday amid the USD demand and now testing 1.0720. Some pips banked and I remain a rally seller as my preferred side. USDJPY: Still looking underpinned overall amid the general USD demand but capping at 139.70 this time after holding 138.80 in yesterday's spike lower. I still prefer to sell rallies/be long JPY overall but ongoing caution/patience required as I've been warning as the recent pattern continues and I'm happy to watch for the moment.

More detailed analysis across a variety of pairs available from

Interbank rates: 08.15 BST

GBPUSD 1.2335

EURUSD 1.0718

EURGBP 0.8688

GBPEUR 1.1509

USDJPY 139.50

GBPJPY 172.00

GBPCAD 1.6782

GBPCHF 1.1185

GBPZAR 23.8303

GBPHKD 9.6128

USDCHF 0.9064

EURCHF 0.9715

EURHKD 8.3517

AUDUSD 0.6530

NZDUSD 0.6085

USDCAD 1.3609

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