US Dollar supply returns
Wednesday 8 February 2023
A day of mixed sentiment for the Greenback yesterday amid US Fed Chair Powell's comments with some USD demand returning prior, and initially in his delivery, but ultimately falling again and continuing to do so since as the second-guessing continues.
Equities too rallied then fell only to rally again before levelling out and a tad softer as European trading gets underway. WTI has had a good rally from yesterday's hold of $75.00, then $76.00, then forming a base at $77.00 and testing resistance around $78.50 as I type. Gold has rallied from $1865 and testing the $1880-85 area again this morning. Ukraine/Russia war continues to be the elephant in the room amid other geo-political risk.
GBPUSD: Holding 1.1960 yesterday after breaking down through the strong support at 1.2000 and 1.1985 but a solid rally (twice) amid the USD supplyto look at 1.2100 since and testing again as I type. I remain a rally seller. EURGBP: Failing around 0.8940 then 0.8920 and now testing 0.8880-85 bids/support as GBPUSD rally outstrips EURUSD.Expect some more two-way trading. Option interest in play.GBPJPY: Capping at 158.50 but holding 157.50 so far as core pairs find some dip demand. Sellers poised still.
EURUSD: Had a down, up, down, up 24 hours of its own like GBPUSD amid the uncertain USD and holding 1.0660 initially before testing 1.0760 that's capping the rally so far. I remain a rally seller. USDJPY: Capping into 131.50 but holding 130.50 in the retreat so far. Rinse n repeat for the moment with the USD jury out.
Plenty more to read in my full report and more detailed update for traders. Mail email@example.com for details.
Interbank rates: 08.48 GMT