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  • Mike Paterson

US employment data helps underpin the Greenback

Monday 7 February 2022

FX pairs going nowhere in a hurry after the ECB-led Euro rally but strong US payrolls and wages data on Friday has helped underpin USD and risk sentiment overall albeit oil is in retreat and now equities following suit as I type with next data focus for the Fed/markets being US CPI on Thursday.

As ever, a case of not over-analysing or second-guessing but keeping your focus on price action in core and cross-pairs and identify ranges and what levels present value for money. Patience invariably a virtue but don't confuse patience with being stubborn either in entry or exit. I will repeat that he who hesitates is often lost in these trading conditions.

GBPUSD: Support now at 1.3500-10 after a failure at 1.3580 then 1.3560. Re-sells duly placed and some pips banked in the retreat as not expecting much atm. EURGBP: Tightly bound post-BOE/ECB fun and games but underpinned still at 0.8420-30 with sellers poised 0.8460 and 0.8480. Expecting more two-way business for the moment. GBPJPY: Support still at 155.50 and testing again as I type after a failure at 156.20 amid the variable risk tones.

EURUSD: Failure at 1.1475 ahead of the larger 1.1500 interest and now testing the expected dip demand into 1.1400-20. USDJPY: Finding support around 114.80 amid that dip demand and JPY supply I highlighted again but failure above 115.30. EURJPY: Dip demand now at 131.00-20 after 131.50 broken in the general EUR retreat. USDCHF: 0.9220 support line amid EURUSD retreat with SNB ever vigilant as EURCHF falls back to 1.0560 after capping above 1.0600. EURCHF: Understandably running out of steam after the ECB-led rally but dip buyers poised for the moment still. SNB can rest easy for the moment but will be ever-vigilant.

AUDUSD: Found support at 0.7060 but failure above 0.7100 since amid firmer USD and variable risk tones. USDCAD: 1.2700-10 now providing support mid softer oil tones after failure at 1.2780 then 1.2760.

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

Interbank rates: 08.40 GMT

GBPUSD 1.3540

EURUSD 1.1437

EURGBP 0.8444

GBPEUR 1.1842

GBPJPY 155.82

GBPCAD 1.7250

GBPCHF 1.2504

GBPZAR 20.9614

GBPHKD 10.5398

USDJPY 115.07

EURJPY 131.57

EURCHF 1.0577

EURHKD 8.9004

AUDUSD 0.7102

USDCAD 1.2722

USDCHF 0.9250

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