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  • Mike Paterson

US Dollar demand prevailing still overall

Monday 28 March 2022

It's mostly a tale of USD demand as we open up another week with USDJPY leading the way again after the BOJ pledged unlimited bond purchases between 29-31 March to try and keep to its 0.25% yield cap, but commodity currencies still finding favour too with the Rand in full-on demand mode too. 8 X 0.25% US rate hikes being priced in this year creating further rises in US Treasury yields again and more Greenback grabbing. Equity markets, Gold and oil are finding dip support still albeit off their highs again

For new and older subscribers alike I repeat my view that it's still a case of not over-analysing but keeping your focus on price action in core and cross-pairs. I can't tell you what's going to happen next, nor can you, but continue to identify ranges and what levels present value for money. Algos will continue to knee-jerk price action on the variable headlines. Discipline is key in these whippy markets. If in doubt, stay out or at the very least keep positions trimmed/manageable.

Housekeeping note: A reminder that UK and European clocks went forward one hour at the week-end so UK now on British Summer Time.

GBPUSD: Found a base at 1.3130 in the latest retreat after failing at 1.3200. I remain a rally seller overall a while keeping an eye on EURGBP and GBPJPY as always.EURGBP: The side-winder continues to sleep (one for you REM fans out there) between 0.8320-50 as core pairs move in unison. More two-way business expected. GBPJPY:Finding support at 161.50 now after the JPY-led break higher and now breaking 163.00 as I type.

EURUSD: HoldingI remain a rally seller overall as preferred side. Decent option interest in play tomorrow through to Thursday. USDJPY: The BOJ-led march higher continues through 124.00 as I type. Caution certainly required right now. EURJPY: Support now at 135.00 and up through 136.30 as I type on the BOJ-led rally with core pairs finding dip demand. USDCHF: Support at 0.9340 after holding 0.9300 with EURCHF showing aome demand at 1.0230 with SNB shadow lurking amid the fragile backdrop. Sellers still poised. EURCHF: Support/bids at 1.0230 againt with

AUDUSD: Testing 0.7540-50 ofers/res amid the commodity-ccy demand after forming a good base at 0.7500. GBPAUD has found a cap now at 1.7580 as AUDUSD rallies again. NZUSD has capped at 0.6970 but holding 0.6930 in the retreat.

USDCAD: Holding 1.2460 in the latest commodity-ccy retreat as oil rallies but sellers poised now at 1.2500-20. Two-way business expected amid all the uncertainty still.

As we look at trading opportunities it's even more important not to over analyze but trade the price action with discipline and patience. I can help with this in my 1-2-1 sessions and now is the time, more than ever, to get on board with those if you haven't already done so. Contact me to take advantage of currently reduced prices.

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

Interbank rates: 08.42 BST

GBPUSD 1.3147

EURUSD 1.0950

EURGBP 0.8330

GBPEUR 1.2003

GBPJPY 162.65

GBPCAD 1.6438

GBPZAR 19.0808

GBPCHF 1.2317

GBPHKD 9.7375

USDJPY 123.73

EURJPY 135.49

EURCHF 1.0236

EURHKD 8.1146

AUDUSD 0.7526

USDCAD 1.2492

USDCHF 0.9344

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