Up n down again for the Greenback
Wednesday 1 March 2023
Good two-way business again for markets and USD supply now returning this morning after some decent demand for a while yesterday. Jury remains out and a timely reminder not to second-guess, assume or get greedy. These remain fickle and fragile times and ever-more fickle markets.
Equities saw a solid retreat yesterday but heading north again as I type this morning amid the softer Greenback tones but WTI is currently in retreat again and testing $76.80-00 after capping at $77.75 a few times in the past 24 hours. Gold has found support at the pivotal $1820 area but equally capping into $1840 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 1.2015-20 yesterday after a rally to 1.2140 amid the general USD supply/GBP strength but now capping 1.2080-00 on the bounce and I remain a rally seller but caution still required at these lower levels. EURGBP: Holding the old 0.8780-85 support again now after yesterday's extended dip to 0.8750-60 in the GBP rally and now rising through 0.8810 again as I type. Expect some more two-way trading as core pairs fluctuate. GBPJPY: A support line now forming at 163.50 again amid firmer risk tones after the retreat from 166.00 yesterday. Sellers will remain poised though as the uncertainty continues.
EURUSD: Holding 1.0560 in yesterday's extended retreat and some pips banked. Currently back up through 1.0650. USDJPY: Capping around 136.50 in the latest rallies but equally holding 135.60 in the exteded dips this morning amid the general USD supply returning.
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: 08.55 GMT