Ranging still as the second-guessing continues
Friday 3 March 2023
The Greenback jury remains out as US bond yields retreat a little and some USD supply returns after yesterday's solid demand. It looks underpinned but ranging still overall as the second-guessing continues. Today's US ISM Services data at 15.00 GMT will be keenly awaited given last month's strong reading.
Equities have seen another decent rally but a little stuck as I type amid the fickle market sentiment while WTI is also off its $77.60 lows but equally failing into $78.50. Gold has found support at $1835 now but equally capping around $1845 as the tight ranges continue amid the global uncertainty. Ukraine/Russia war continues to be the main geo-political elephant in the room.
GBPUSD: A decent hold of 1.1920 yesterday where my T/A man $fxchartopper warned of strong support in his email yesterday to our subscribers and I tweeted about later but now capping into 1.2000 on the bounce and I remain a rally seller.EURGBP: Still holding 0.8850-60 in the retreat having capped at 0.8875-80. Expect some more two-way trading as core pairs fluctuate. GBPJPY: A support line now forming at 163.00-20 but sellers still poised as the uncertainty continues and capping into 163.65 this time.
EURUSD: Holding 1.0575-80 but equally capping at the old 1.0620-30 support/now resistance line. Some decent option contract interest again today. USDJPY: Capping around 137.00 yesterday as the building offers I warned about prevailed helped by some softer USDF tones returning. No coincidence. Holding 136.20 in the dips again so far and some pips gratefully banked in the retreat.
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Interbank rates: 08.30 GMT