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By XE Market Analysis April 6, 2015 2:25 pm
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    XE Market Analysis: Asia - Apr 06, 2015

    The dollar was mixed in N.Y. trade, thought with London on holiday, activity was somewhat muted on Easter Monday. EUR-USD reclaimed the 1.10 handle in morning dealings, though while it moved above Friday's peak, it was unable to test the March highs of 1.1040-50. A rebound in yields and equities helped USD-JPY move up to 119.20, after it found overnight support under the figure, while USD-CAD stayed under 1.2500, as oil prices surged over $52.00. On the economic front, non-manufacturing ISM met consensus forecasts, and provided some support to the greenback.

    [EUR, USD]
    EUR-USD gains stalled under 1.1040, just above Friday's post-jobs data peak, but under the March peaks of 1.1040-50. The pairing later fell into 1.0980 lows. Activity was muted through the morning, with London out today, though the uptick in risk levels, and a rebound in U.S. yields helped the greenback recover some into the close.

    [USD, JPY]
    USD-JPY continued to find support under 119.00 through the session, with talk of EUR-JPY demand helping to support the dollar pairing. The cross's move over 131.00 brought fresh buying to bear, helping USD-JPY from N.Y. session lows near 118.90 back to 119.20 highs.

    [GBP, USD]
    Cable extended its post-U.S. job gains on Monday, peaking at 1.4981 before turning lower again. The pairing ran into resistance ahead of the March 26 high of 1.4994, before turning lower in thin, London-less dealings. Option back offers are reportedly in place ahead of the key 1.5000 level.

    [USD, CHF]
    EUR-CHF has established a lower trading range under 1.0500, posting levels last seen in January of 103.90 on Thursday. There have been some analyst notes in circulation highlighting further policy options the SNB has available to try and keep a lid on the franc (including cutting rates deeper into negative territory). The SNB said at its March policy review that the franc is "significantly overvalued and should continue to weaken over time," and that, in a shot across the bows of the market, said it will continue to take account of the franc rate situation in policy decisions and "remain active in the foreign exchange market, as necessary."

    [USD, CAD]
    USD-CAD rallied briefly over 1.2480 from under 1.2465 immediately following the softer Ivey PMI headline, though quickly edged back into 1.2450. Oil and gold prices remained firm, while the greenback overall continued to struggle. Standing offers are now reported from 1.2500, while bids are expected into the 1.2410 region, which has provided support for a month now.

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