Home > XE Currency Blog > XE Market Analysis: Asia - Apr 07, 2015

AD

XE Currency Blog

Topics7223 Posts7268
By XE Market Analysis April 7, 2015 3:26 pm
    XE Market Analysis's picture
    XE Market Analysis Posts: 5147
    XE Market Analysis: Asia - Apr 07, 2015

    The dollar was on a broad upward path through the N.Y. session on Tuesday, taking EUR-USD under pre-jobs report levels seen last Friday. The euro touched 1.0815 lows, after peaking at 1.0884. USD-JPY meanwhile, moved up from lows near 120.10 to peak just under 120.45. Better risk levels, and firmer yields supported there. Cable eased into 1.4820 lows, despite better U.K. services PMI, while USD-CAD traded near 1.2500, despite another sharp oil rally.

    [EUR, USD]
    EUR-USD was relatively calm through the N.Y. session, ranging between 1.0815 and 1.0884, in a slow and steady decline. Initial support was seen into 1.0934, the London low, though that gave way in afternoon dealings. Option backed bids are now noted at 1.0800. The 20-day moving average currently stands at 1.0878, and the N.Y. close under the level could lead to further losses overnight.

    [USD, JPY]
    USD-JPY continued to grind higher, peaking at 120.43, and getting a bit of a boost after breaking through the April 1 high of 120.32. The BoJ announcement tonight is not expected to have much impact on the yen, with a "no change' result expected, though the better risk backdrop and firmer U.S. yields should keep dollar-yen buoyant for now. Option barriers are noted at 121.00 which will likely be defended in the near term.

    [GBP, USD]
    Sterling traded lower in N.Y. on Tuesday, following the broad dollar move higher. Cable opened near 1.4910, and methodically made its way to 1.4820 lows. The move came despite the better U.K. services PMI data, and generally positive U.K. outlook, though the looming election brings concerns of a hung parliament outcome, which may keep a lid on sterling until then.

    [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 was late to catch up with the greenback's London rally, moving up to 1.2522 highs in early North American trade, after languishing on either side of 1.2475 overnight. Option backed buying was reported over the figure, though domestic offers were noted into the highs, and ultimately capped gains. Oil prices rallied again, which limited further upside USD-CAD momentum, though given the greenback's broadly firmer tone, downside was kept to 1.2467.

    Paste link in email or IM