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  • Writer's pictureMike Paterson

Jury still out with CB's in focus

Friday 27 January 2023

Stop me if you've read this before but we've seen another up n down 24 hours with FX pairs still range-bound overall as the mixed USD tones and Central Bank/inflation second-guessing continue with FOMC, BOE, ECB and US NFP data all looming next week. Good two-way business still. Month-end flow signals still pointing to some USD supply so keep that in mind as today we trade month-end spot value but interestingly we've seen some USD demand into the fix thus far mostly.

Equities remain underpinned on hopes that CB rate hikes will be to the low side while WTI fell to $80.50 having capped above the old line at $82.00 in its extended rally and has been supported at $81.00 since but tightly bound still. Gold finding support at $1920 again failing into $1950 so still tightly bound as the guessing games continue. Ukraine/Russia war continues to be the elephant in the room amid other geopolitical risk.

UK Fin Min Hunt beginning a report of UK economy delivered at Bloomberg offices in London as I finish this update.

GBPUSD: Capped above 1.2420 again but held that 1.2340 line again in the retreat and capping again since at 1.2420 but supported at 1.2360 for the moment. Good two-way pips whatever your preference. Keep an eye on GBP crosses still.EURGBP: Failing at 0.8800 so far after holding 0.8770.Expect some two-way business still as core pairs and CBs make their mind up. GBPJPY: Finding support at 160.50 this time after capping at 161.75 as the jury remains out.

EURUSD: A good hold of 1.0850-80 again struggling to hold above 1.0920 again. Not rocket science.I remain a rally-seller in peference as I still believe recent EUR demand a little overdone on ECB expectations. USDJPY: A hold of 129.60 then solid rally to 130.60 in the general USD demand.

Plenty more in my full report which you can read by emailing

Interbank rates: 08.35 GMT

GBPUSD 1.2370

EURUSD 1.0883

EURGBP 0.8793

GBPEUR 1.1370

GBPCAD 1.6475

GBPCHF 1.1397

GBPZAR 21.3244

GBPHKD 9.6362

USDJPY 129.88

EURJPY 141.38

EURCHF 1.0022

EURHKD 8.4751

AUDUSD 0.7106

NZDUSD 0.6488

USDCAD 1.3335

USDCHF 0.9206

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