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By XE Market Analysis April 9, 2015 4:00 pm
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    XE Market Analysis: Asia - Apr 09, 2015

    The dollar firmed up through the N.Y. session on Thursday, paced by EUR-USD losses. After opening over 1.0775, EUR-USD fell steadily through the session, basing at 1.0644. The theme has generally been one of divergent central banks following the FOMC minutes on Wednesday, where the for remains opened a crack for a June rate hike. Elsewhere, USD-JPY rallied to 120.64, levels last seen on March 20, helped by firmer Treasury yields. USD-CAD was bid up over 1.2600 on softer oil prices, along with short covering activity ahead of the Canadian jobs report on Friday, as cable followed the euro's lead, slipping under 1.47.

    [EUR, USD]
    EUR-USD traded through the March 31 low of 1.0713 in morning dealings. Greece concerns continued to weigh on the euro, though it seemed the FOMC minutes on Wednesday brought the divergent ECB and Fed policy outlooks back into focus. The dollar traded broadly higher since the minutes release, and euro bears set their sights set on the 1.06 handle. The break under 1.0700 saw the March 20 low of 1.0655 targeted, and the pairing made an afternoon push to EUR-USD traded to 1.0640 lows into the close. Today marked the third consecutive session of lower daily highs and lower daily lows, leaving negative euro sentiment in place.

    [USD, JPY]
    USD-JPY rallied to near three-week highs, putting in a 120.65 high, after opening the session near 119.90. The dollar's general uptrend was supportive, as was the uptick in Treasury yields. Barrier options remain in place at 121.00, and are expected to be defended into Friday morning's N.Y. expiry time.

    [GBP, USD]
    Cable fell to levels last seen on March 18, basing at 1.4685, and within sight of March's near five-year low of 1.4635. The dollar's general resurgence has weighed on sterling, though ahead of an uncertain U.K. election in May, sterling may remain pressured.

    [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 traded to 1.2613 highs, up sharply from Wednesday's 1.2398 base. Significant short covering had been seen over the past day, as oil prices moved lower, though buying related to Friday's Canadian employment report was likely a driver through the Thursday session as well. Traders look for a close over 1.2566, which represents the 20-day moving average, to keep the upside in focus.

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