Greenback supply notable again
Wednesday 9 November 2022
Another day, another pause and another round of USD supply as the trend continues amid conjecture on US CPI data/Fed moves, geopolitical risk, China Covid unknowns, and the US mid-term elections with the Republicans potentially on course to win the House of Representatives.
Oil has seen a further substantial retreat with equities also running out of puff but seemingly underpinned as market focus remains on US CPI data tomorrow. Gold meanwhile is finding another head of steam to break up through $1680 and test $1715. Cryptos continue to slide.
Breaking news: Some USD demand returning as I finish this report with GBP getting a particular slap across the board in these ever-fickle times. Keep up at the back!
GBPUSD: A solid hold of 1.1450 and then a fresh USD supply-led rally to burst up through 1.1525-30 and post 1.1567. Some re-sells duly placed and I remain a rally seller overall with some caution required amid these notable spurts of USD supply. EURGBP: Underpinned at 0.8700 again after a decent retreat yesterday from 0.8740 as GBPUSD rally outstripped EURUSD again but now reversing that and testing 0.8750 again. I expect the two-way business to continue. GBPJPY: Capping at 168.30-50 this time and now testing 167.50 amid the core pair rally-sells and softer risk tones again.
EURUSD: Breaking back up through parity again amid the USD and now taken out the decent resistance/offers at 1.0025-30 and 1.0050.. Cross flows, risk, Ukraine all in the frame. USDJPY: Capping at 146.50 then 146.00.00 this time amid the USD supply and softer risk JPY demand too. Intervention threat still and I expect rally sellers to prevail for the time being and remains my preferred side. Some option interest tomorrow amid US CPI fallout to keep in mind. EURJPY: Supported at 146.00 again but sellers prevailing again around 146.80 amid softer risk tones. USDCHF: Solid USD supply again has sent it lower through 0.9850 but this time holding 0.9825-30 so far. Some solid EURCHF dip demand into 0.9880-00 with SNB never far away and reportedly buying in NY last night. EURCHF: Capping around 0.9940 this time as USDCHF sellers prevail once more but SNB support noted between 0.9880-00.
AUDUSD: Forming a base around 0.6475-80 amid the renewed USD supply but capping at 0.6530-50. NZDUSD also rallying yesterday amid the softer USD but failing at 0.6000 with support at 0.5900 now being tested again amid some USD demand returning. USDCAD: tightly bound still amid the variable/fickle USD and oil price action. Now testing 1.3455 after holding 1.3400.
A stunning game of football last night at the Hallowed Hall with the mighty Shrimpers earning a draw against league leaders Notts County after twice fighting back and now in 4th place. Come on !!!!!!!!!!!
Interbank rates: 08.38 GMT