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  • Writer's pictureMike Paterson

More fun and games as markets continue second-guessing

Friday 3 February 2023

The BOE & ECB both duly delivered 0.5% hikes but some dovish tones from Bailey & Co while Lagarde and the ECB were less than convincing in their trying to remain hawkish with obvious cracks appearing from the rhetoric. Both cases that I expected and wrote about so I hope the steer helped. Lots of fun and games since with the Pound understandably taking another hit and the Euro getting a reality-check sell-off but still outperforming its former room mate across the English Channel.

Equities are off their highs again and in retreat again as I type while WTI has found a strong cap at $77.00 now but holding $75.15-25 so far. Gold once again failed above $1950-60 but now forming a base at the strong $1900-10 area. Ukraine/Russia war continues to be the elephant in the room amid other geo-political risk. US NFP data today will add to the FOMC hype and keep markets guessing.

GBPUSD: Holding 1.2180 support as I type per my tweet earlier after capping again into 1.2400 on the algo-led knee-jerk on rate hike headline. EURGBP demand and GBPJPY supply helping to undermine GBPUSD still. EURGBP: Strong rally again after holding the 0.8880 pivot area yesterday and helping to cap GBPUSD as EURUSD retreated too but lagging on the CB dfferenttials. Looking underpinned still .GBPJPY: Finding support around 156.75 after capping at 159.50 in the post-BOE knee-jerk higher amid the generally soggy GBP tones and JPY demand amid the bond/equity market uncertainty

EURUSD: I wrote this yesterday... "some re-sells duly placed above 1.1000 but market still has a few bids in the dip amid hawkish ECB expectations. I'm not convinced and poised to re-sell if ECB disappoints the hawks." Et voila! A decent drop to test 1.0880 support. I hope the steer helped. Option interest in play if we rally. USDJPY: A hold of 128.00-05 yesterday but equally failing above 128.75-00 now.

Plenty more to read in my full report which you can receive by emailing Also for details on my 1-2-1 mentoring services for traders and my market strategies across a number of pairs each day.

Interbank rates: 08.22 GMT

GBPUSD 1.2187

EURUSD 1.0886

EURGBP 0.8934

GBPEUR 1.1191

GBPCAD 1.6309

GBPCHF 1.1187

GBPZAR 20.9440

GBPHKD 9.5120

USDJPY 128.70

EURJPY 140.13

GBPJPY 159.27

EURCHF 0.9975

EURHKD 8.4993

AUDUSD 0.7050

NZDUSD 0.6462

USDCAD 1.3360

USDCHF 0.9162

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