Some US Dollar demand returns
Wednesday 22 February 2023
Markets continue to second-guess the Central Banks but we've seen some Greenback demand return in the past few hours. Later today we get the FOMC Minutes at 19.00 GMT then at 22.30 NY Fed head Williams talking about inflation.
Equities remain near their lows albeit flatlining for the moment while WTI is also now trading below $75.50 after capping at $76.50 then $76.00 as risk sentiment remains a little soggy. Gold capping at $1845 and near its $1830 recent lows again amid the uncertainty. Ukraine/Russia war continues to be the elephant in the room.
Remember, focus on the price action and let the algos do the heavy lifting/dropping. The important thing is to identify your preferred risk/reward entry/exit levels prior and be poised to execute.
GBPUSD: A decent hold of 1.2000 yesterday and sharp spike through thw 1.2050-60 pivot area triggering stops amid some USD supply before capping at 12140 and falling back down to 1.2075 this morning. I remain a rally seller but caution still required at these lower levels. EURGBP: Holding 0.8775 in the decent retreat from 0.8880 yesterday amid some GBP strength and sellers poised into 0.8830 now. Expect some more two-way trading as core pairs fluctuate. GBPJPY: A support line now forming at 162.50 but capping at 163.50 as some soggier risk tones return as the JPY jury remain out.
EURUSD: Holding 1.0630 this morning af yesterday's cap at 1.-0700 again then 1.0660 amid the USD demand.I remain a rally seller as my preferred side still. USDJPY: Capping around 135.20 and now struggling to hold aobe 135.00 again but underpinned at 134.50-60 now. Still poised to re-sell rallies when momentum fades as I still favour being long JPY on the crosses too overall.
Plenty more to read in my full report and more detailed update for traders plus my 1-2-1 mentoring sessions. Mail firstname.lastname@example.org for more info.
Interbank rates: 09.30 GMT GBPUSD 1.2070 EURUSD 1.0642 EURGBP 0.8815 GBPEUR 1.1343 GBPCAD 1.6353 GBPCHF 1.1200 GBPZAR 22.0791 GBPHKD 9.4025 USDJPY 134.93 EURJPY 143.62 GBPJPY 162.90 EURCHF 0.9871 EURHKD 8.2915 AUDUSD 0.6820 NZDUSD 0.6216 USDCAD 1.3551 USDCHF 0.9275