Greenback grabbing notable again
Tuesday 16 August 2022
Some decent moves wnile I've been off and good two-way jobbing opportunity albeit with US Dollar demand overall still but the jury remains out. The PBOC rate cut to stave off economic decline amid some rUbbish data gave markets a little wobble and negative impact on AUD but equities are continuing their joy ride regardless although resistance levels notable on a few exchanges.
Oil is lower again and looking vulnerable still amid Iran nuclear deal talks and gold off its highs too. JPY supply again this morning on the better risk tones but EURCHF lower as is EURGBP despite some soggy UK wages data earlier. Canadian CPI data out later today then the latest UK readings tomorrow. RBNZ expected to announce 0.5% rate hike with hawkish tones tonight.
GBPUSD: Capped at 1.2150 then 1.2115 and now 1.2060 as the pressure stays on and a few pips banked again per ongoing strategy of re-selling rallies. I will stand poised for more of the same as we continue to range with patience a virtue still.
EURGBP: A good hold of 0.8415-20 again in the latest retreat, this time from 0.8450 amid some general EUR supply. I still think we'll see two-way opportunity.GBPJPY: Now capped around 161.50 but a good hold of 160.00 helped by some firmer risk tones and USDJPY staging a decent bounce from 132.60. The risk and USD jury remain out and we can expect some fragile price action still after the recent consolidation.
EURUSD: A steady decline through the 1.0200-20 support area and now down to 1.0143 but some option interest today may help contain. USDJPY: Another dip yesterday justifying my sell-rally plays but equally good dip demand into 132.50 and longs will be happy with that too. EURJPY: Forming a base around 136.00 after falling from 136.00 but with sellers poised still whenever risk turns.USDCHF: Holding 0.9400 overall still after that brief wobble to 0.9370 with the SNB seemingly more than just keeping an eye on things with CHF demand still notable helped by rate hike expectations as I've been warning but USD demand also helping to underpin. EURCHF: 0.9700 support now history amid the general EUR supply but holding 0.9600 with SNB smoothing but some inherent CHF demand still capping rallies too.
AUDUSD: Good support currently between 0.6980-0.7000 after the firmer USD/wobbly China retreat from 0.7100. GBPAUD capping at 1.7250 still but holding 1.7100 so far. NZDUSD capping 0.6380 but holding 0.6320 so far with RBNZ expected to hike rates again tonight. GBPNZD holding 1.8925 in the latest retreat after capping around 1.9050.USDCAD: Capping at 1.2935 tafter yesterday's strong rally from 1.2800 amid the firmer USD/softer oil double whammy. Expect some good two-way business overall still amid the variables.
Let's continue to be careful out there.
Interbank rates: 08.40 BST