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By XE Market Analysis April 15, 2014 5:00 pm
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    XE Market Analysis: Asia - Apr 15, 2014

    The dollar perked up some in the aftermath of the bit firmer headline and core U.S. CPI data early in the session, though as equities turned solid gains into big losses, the greenback faded. USD-JPY touched 101.50 after failing to break 102.00 for the umpteenth time, while EUR-USD reclaimed the 1.3800 handle after finding support into 1.3790. Reported skirmishes (unconfirmed) in the Ukraine kept risk taking levels subdued, though stocks did manage to pare losses considerably in afternoon dealings.

    [EUR, USD]
    EUR-USD peaked at 1.3826, after finding good support into 1.3790 through mid morning. Range trade mentality dominated through the session however, with intra day short covering stepping in at 1.3800. The 1.3790-1.3830 held through the afternoon, as the euro flat-lined near 1.3810 into the close.

    [USD, JPY]
    USD-JPY made a feeble attempt to take out 102.00 after the U.S. CPI data, though quickly reverted back to the 101.80 region. Stops were later tripped at 101.65, resulting in a move to 101.50. Last week's 101.32 low will be the next key level to the downside.The pairing did find buyers into 101.50, reportedly Japanese backed, and has since rallied back toward 101.85 in concert with Wall Street's paring of its sharp earlier losses. Rumors that Japan may downgrade its economic outlook were heard, which may have helped the yen lower in afternoon trade as well. Depending how much more stocks can rally back, the 102.00 level may yet again come into focus into the close. Buy stops from 102.10 could be getting large.

    [GBP, USD]
    Sterling quickly recovered from a post-data dive, with Cable making 1.6720 after a brief dive to 1.6660 into the N.Y. open. The new cycle low of 1.6% y/y in headline CPI hadn't been entirely expected. The pairing made its way toward 1.6750 in N.Y. trade, ahead of what is expected to be a good U.K. labor report.

    [USD, CHF]
    EUR-CHF dipped to a one-month low of 1.2142 on Monday, even though SNB's Jordan said that Swiss inflation remains "very low," and that the franc cap would still be defended. The situation in the Ukraine remain a concern, and this is a supportive factor for the CHF.

    [USD, CAD]
    USD-CAD traded to 1.1013 highs after the hotter U.S. CPI data, making six-session highs in the process. Slightly wider U.S./Canada yield differentials were likely a factor in the CAD's softening this morning, while stops at 1.1000 helped USD-CAD higher as well. The pairing did not spend much time over 1.1000 though, as it drifted into a 1.0975 base, before turning sideways for the duration of the session.

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