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  • Mike Paterson

Markets waiting on US inflation data

Thursday 10 February 2022

FX pairs still ranging tightly overall as markets continue to anticipate the CBs with next clues from across the pond coming at 13.30 GMT today in the latest US inflation figures. Equity markets treading water with Oil still making its mind up too while Gold nudges higher yet again amid the uncertainty.

Yesterday BOE chief economist Pill kept all options open in his speech but if anything poured a little cold water on the timing and extent of UK rate hikes and that helped cap GBP but equally not dropping too far either as the speculation continues.

As ever, a case of not over-analysing or second-guessing but keeping your focus on price action in core and cross-pairs and identify ranges and what levels present value for money. Patience invariably a virtue but don't confuse patience with being stubborn either in entry or exit.

GBPUSD: Support still at 1.3520-30 helped by some large option interest at 1.3520 and 1.3500 I've been highlighting on the boards all week but still struggling to hold gains in the rallies which yesterday extended to 1.3588. EURGBP:Holding support at 0.8415-20 still but equally sellers poised 0.8450-60 now then larger at 0.8480 still. Decent option interest today at the 0.8405 tech support area. GBPJPY:Support now at 156.30 afte failing at the 156.80 offers as the jury remains out.

EURUSD: Holding around 1.1410-20 this time but failing at 1.1450 amid the uncertain ECB tones generally.USDJPY: Still finding support around 115.30 amid the USD dip demand and JPY supply overall but failure at 115.70 so far. EURJPY: 132.00 resistance now history with dip demand now at 131.80 and 131.60 as risk sentiment/ECB second-guessing continue. USDCHF: 0.9220 support line still but equally capping at 0.9250-60 amid tight ranges elsewhere. SNB ever vigilant and some general USD demand to help support. Rally sellers still poised though. EURCHF: Holding 1.0540 now with SNB shadow cast still but rally aellers stil poised.

AUDUSD: Support/bids now coming in at 0.7160 amid firmer Gold and AUDJPY demand and where we also have decent option interest today.A rally now to look at 0.7180-00 offers/res as I type. General USD demand helping to cap still. USDCAD: 1.2660 now providing support again with no coincidence that we have large option interest rolling off tomorrow and very much in play prior. Variable oil price not helping to give a lead so sellers still poised 1.2700-20.

Let's continue to be careful out there in all things. Staying safe must be our main priority still.

Interbank rates: 07.31 GMT

GBPUSD 1.3536

EURUSD 1.1421

EURGBP 0.8435

GBPEUR 1.1852

GBPJPY 156.54

GBPCAD 1.7150

GBPCHF 1.2521

GBPZAE 20.5324

GBPHKD 10.5476

USDJPY 115.63

EURJPY 132.06

EURCHF 1.0552

EURHKD 8.8995

AUDUSD 0.7180

USDCAD 1.2670

USDCHF 0.9236

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