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By XE Market Analysis April 11, 2019 3:08 pm
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    XE Market Analysis: Asia - Apr 11, 2019

    The Dollar moved higher in N.Y. on Thursday after the hotter U.S. PPI and near 50-year low jobless claims print. The DXY rallied to 97.15 from 96.90 lows. EUR-USD dipped to 1.1250 from pre-open highs over 1.1280. USD-JPY headed to 111.63 highs from .111.10, while USD-CAD topped at 1.3395 from 1.3350 as oil prices corrected lower. Cable was rangebound in the mid 1.30s.

    [EUR, USD]
    EUR-USD eased to 1.1250 lows after the Dollar-supportive CPI and jobless claims figures, coming from a 1.1287 peak during the London morning session. Sellers had stepped in at the N.Y. open, with a break under the 20-day moving average (1.1275) prompting the initial Euro dip. Sell-the-rally remains in place on a bigger picture level, with a dovish ECB and slowing EU growth combining with a relatively stronger U.S. economy to keep pressure on the Euro.

    [USD, JPY]
    USD-JPY was given a boost by the warmer U.S. PPI data, and near 50-year low initial claims print. The pairing rallied to 111.63 from opening levels around 111.10, trading through its 200-day moving average, which sits at 111.50. Firmed up Treasury yields provided support to the Dollar overall following the data.

    [GBP, USD]
    Cable was rangebound through the N.Y. session, peaking at 1.3094 early on, then fading under 1.3055 after the London close. The flexible extension of the Brexit process, with a deadline of October-31, has taken Brexit off the "of-immediate-concern" list with the UK having, for now, avoided a disorderly no-deal exit from the EU. UK Prime Minister May has urged MPs to reflect on Brexit over the Easter holiday, which has invited her critics to suggest that she is the one who should be reflecting given her intransigence to finding a workable compromise in Parliament. The government and Labour will continue to try and find a compromise, though it's not looking likely that May is willing pay the price of splitting her Tory party that striking a deal with Labour would entail.

    [USD, CHF]
    EUR-CHF pulled back from three-week high at 1.1314, after U.S. PPI data, which weighed on EUR-USD. The rotation higher the past few sessions tracked gains in EUR-USD, which today was reversed to a degree.. SNB member Maechler said last week that while the Swiss economy remains dynamic and the global economy should remain solid, inflation pressures remain very weak and the environment is fragile, which continues to warrant expansionary monetary policy. The EUR-CHF cross has been seeing choppy directional impulses since the start of the year, often times characterized by bouts of pronounced underperformance in the Swiss franc that have often been accompanied by talk/suspicions of SNB intervention.

    [USD, CAD]
    USD-CAD was given a boost over 1.3380 from near 1.3350 earlier in the session, reacting to WTI crude falling back under the $64.00 level. The USD-friendly U.S. PPI and better jobless claims subsequently took the pairing to one-week highs of 1.3395, and above its 20-day moving average of 1.3355.

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