Greenback grabbing returns
Wednesday 6th April 2022
Atrocities sadly continue in Ukraine and we've seen a further sell-off in US treasuries and therefore rising yields supporting the Greenback after some hawkish tones from Federal Reserve members yesterday with USD gains across the board. Equities, gold and oil all underpinned still too albeit off their latest highs.
Rising inflation fears still remain firmly on the CB agenda with the RBA highlighting further concerns and today sees the latest FOMC Minutes released.
GBPUSD: Found a cap above 1.3150 again and some more re-sells duly made per ongoing strategy with pips banked in the retreat to 1.3050. I remain a rally seller overall while keeping an eye on EURGBP and GBPJPY as always.
EURGBP: Another retreat to test 0.8325-30 and now capping into 0.8350 as he Euro remains under pressure. I would still expect some more dip demand down here but equally sellers poised in the bounce.GBPJPY: Finding support at 161.50-60 in the latest retreats but failing at 162.20 so far as GBPUSD fall finally outstrips USDJPY rally.
EURUSD: A further retreat through 1.0900 on the generally softer EUR tones and firmer USD has seen a test of 1.0880 now. USDJPY: Holding 123.00 then 123.50 in the latest retreats amid the general USD demand but failing at 124.00 so far. EURJPY: Support still at 134.50 and now 134.80 in the latest retreat and testing that 135.20 line again in the subsequent rally so far. USDCHF: Support coming in at 0.9280-00 now amid the USD and EURCHF buying in a notable reversal with the SNB probably giving a helping hand finally but capping at 0.9350 so far.EURCHF: Testing 1.0200 in this morning's strong rally after a hold of 1.0125-30 with the SNB seemingly now stepping in to help but sellers poised still.
AUDUSD: A cap at 0.7660 then 0.7600-20 sees a test of 0.7560 in the USD-demand retreat but with dip buyers expected on the more hawkish RBA tones. NZDUSD also saw its own retreat from 0.7035 but demand into 0.6930 holding the fall so far. USDCAD: 1.2400 holding the extended retreat yesterday but equally still can't get back up through 1.2520-30 area. Two-way business still expected amid all the uncertainty. Options interest in play too.
Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good weekend everyone.
Interbank rates: 08.46 BST