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By XE Market Analysis April 15, 2019 3:43 pm
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    XE Market Analysis: Asia - Apr 15, 2019

    The Dollar bounced from overnight lows, taking the DXY to 96.95 from 96.80 lows at the open. Major Dollar pairings were range bound, though overall supported by a better Empire State index, and by some save-haven USD buying on the back of largely risk-off conditions. EUR-USD dipped briefly under 1.1300, then steadied just over the figure. USD-JPY spent the session on either side of 112.00. USD-CAD Cable topped over 1.3110, later falling back to lows near 1.3090.

    [EUR, USD]
    EUR-USD has been steady through the N.Y. session, ranging between 1.1315 and 1.1298 since the open. The Dollar has perked up some on the back of safe-haven flows, keeping a cap on the pairing. Fedspeak from Evans said the U.S. economy has improved since late last year, while ECB council member de Galhau said monetary policy needed to remain accomodative, both weighing on the Euro.

    [USD, JPY]
    USD-JPY continued to find support under the 112.00 mark, after topping at 112.09 overnight. Optimism on U.S. China trade talks has supported the pairing, following remarks from U.S. Treasury Secretary Mnuchin over the weekend, who said negotiations were in their final stages. Talk of Japanese exporter backed offer over the 112.00 mark however, have seen upside progress limited for the time being. A move over the March 5 high of 112.13 will take the pairing to near four-month highs.

    [GBP, USD]
    Cable topped over 1.3110, a level the pairing has been gravitating around for about seven weeks now. Cabinet minister Hunt said earlier that recent talks between the government and Labour on finding a Brexit compromise have been detailed and more constructive than generally believed. Presently, the font of Brexit news has dried up due to the delay in the process (deadlined at October 31), and the parliamentary break for the Easter holidays. We expect the pound to remain underpinned, but also without upside bias. A regular survey from accounting firm Deloitte, published today, provided fresh evidence that the Brexit uncertainty has been having on the economy. 49% of UK CFOs anticipate having to reduce capital expenditure and 22% expect having to trim mergers and acquisitions activity.

    [USD, CHF]
    EUR-CHF rallied to three-week highs of 1.1354, the move higher coming as EUR-USD topped over 1.1300. The rotation higher the past few sessions tracked gains in EUR-USD. 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 fell to one-week lows of 1.3298 early in the session, later bouncing to 1.3390 in the aftermath of the BoC outlook. The report painted a mixed picture for the Canadian economy. The survey found that the main headwinds are from a more uncertain outlook in the W. Canada energy sector, ongoing weakness in housing and tangible impacts from global trade friction.

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