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  • Writer's pictureMike Paterson

Greenback grabbing still

Tuesday 11 October 2022

Market data focus this week remains on the latest US CPI numbers on Thursday but this morning's UK jobs and wages data showed real income once again slipping behind the rate of inflation unsurprisingly. Add the BOE having to step up their gilt buying programme amid further pension fund scares and we've seen some wobbly Pound action yet again.

USD demand still overall keeping a lid on major FX pairs albeit off their lows as I type but with USDJPY and USDCHF still underpinned. Oil and equities off their lows but Gold still looking soggy down at $1666. Fragile geopolitical backdrop still as Russia continues with its latest random missile attacks.

GBPUSD: Another rally-sell opportunity but stalling at 1.1100 and with a drop this time to test 1.1000 today. Some good two-way business but I prefer rally-sell side still as and when momentum fades. EURGBP: Still ranging tightly but up through 0.8800 on latest GBP owbble. I expect more two-way business to continue with the Eurozone facing issues of its own. GBPJPY: Another drop to test 160.25 amid the fragile GBP and risk tones. USDJPY still vulnerable to BOJ intervention/USD sentiment turnaround but underpinned into 145.50 this morning.

EURUSD: Still under pressure of its own amid the general USD demand but holding at 0.9670 for the moment after capping at 0.9725 again. I remain a rally seller as my preferred side. Cross flows, risk, Ukraine and ECB conjecture all in the frame still as well as USD flows. USDJPY: Holding above 145.40 now amid the general USD demand but still subject to soggy-risk JPY demand. EURJPY: Capped still at 141.50 amid softer EUR and risk tones. USDCHF: Capping at 1.0020 this time but now support at 0.9980 with help from the general USD demand and soft EURUSD. EURCHF: Good support now at 0.9680 and holding 0.9700 as I type with SNB still casting its shadow.

AUDUSD: Capping into 0.6300 this time amid the general USD demand but holding 0.6250 so far.I remain a rally seller as my preferred side. GBPAUD holding 1.7550 this time gain but capped above 1.7650 on latest GBP wobble. NZDUSD also still soggy on the USD demand falling but holding 0.5535 in latest retreat so far. GBPNZD falling from 1.9950 to 1.9800 amid the general GBP supply. USDCAD: A good rally from 1.3750 on the general USD demand/ oil slide but capping around 1.3850 helped by firmer oil tones this morning.

Let's continue to be careful out there.

Interbank rates: 08.18 BST

GBPUSD 1.1039

EURUSD 0.9712

EURGBP 0.8800

GBPEUR 1.1365

GBPJPY 160.64

GBPCAD 1.5262

GBPCHF 1.1030

GBPZAR 20.0033

GBPHKD 8.6002

USDJPY 145.60

EURJPY 141.40

EURCHF 0.9704

EURHKD 7.5674

AUDUSD 0.6275

NZDUSD 0.5573

USDCAD 1.3826

USDCHF 0.9992

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