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By XE Market Analysis April 20, 2017 2:53 pm
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    XE Market Analysis: Asia - Apr 20, 2017

    The dollar was mostly firmer in N.Y. trade on Thursday, leaving EUR-USD at 1.0715 lows from a peak of 1.0776. USD-JPY meanwhile perked up on risk-on conditions, topping at 109.48, up from 108.98 lows. USD-CAD tested the 1.3500 level, printing new five-week highs, while cable slipped back toward 1.2800 from 1.2847. Incoming U.S. data revealed slightly higher jobless claims, and a better leading indicators outcome, the later of which gave the dollar a modest boost. Wall Street soared on renewed talk of ACA repeal, and tax reform.

    [EUR, USD]
    EUR-USD gains stalled at 1.0776, a point under London's peak. The dollar lost ground to the euro earlier, largely on hopes that Macron would eventually prevail in becoming the next French president. This said, uncertainty remains, with the race too close to call. As a result, the market is likely to temper its buying efforts ahead of Sunday's poll. From earlier highs, EUR-USD has slipped back under 1.0715.

    [USD, JPY]
    USD-JPY printed an intra day peak of 109.46 after the London close, a seven-session high, with improved risk taking levels, and firmer Treasury yields providing support. The pairing found support under the 200-day moving average, which sit at 108.82. The N. Korea situation appears to have taken a back seat for now, even as Pyongyang continues to rattle sabers, most recently threatening a "super-mighty pre-emptive strike" to reduce South Korea and the United states "to ashes."

    [GBP, USD]
    Sterling came under some broader pressure, slipping against the dollar, yen and euro since the late London AM session. Cable dipped to a 1.2787 low, and subsequent rebounds lost steam above 1.2800. EUR-GBP rallied above 0.8400, recouping over a third of the losses sparked by Tuesday's call from British PM May for a snap general election. Resistance is at 0.8440.

    [USD, CHF]
    EUR-CHF lifted back above 1.0700 on the coattails of EUR-USD, which rallied to three-week highs. This puts in some distance from the February-8 low at 1.0632, which is lowest level traded since last June. Recent declines have reflected broader euro weakness following the ECB's walk back of market speculation that the central bank might have been preparing to switch out of its dovish guidance at its policy meeting next month. There is also political risk into France's presidential elections. EUR-CHF support is at 1.0677, and resistance is at 1.0720-25.

    [USD, CAD]
    USD-CAD printed fresh five-week high at 1.3499, extending the recovery from last week's six-week low at 1.3223 and making today the fourth consecutive up session. The pairing has been driven up by soft oil prices, which began on Wednesday. WTI crude was unable to hold the $51 handle through the session, and a break under the key $50 mark will likely see USD-CAD test the March high of 1.3535.

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