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By XE Market Analysis April 20, 2020 3:05 pm
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    XE Market Analysis: Asia - Apr 20, 2020

    The Dollar was range bound in N.Y. on Monday, losing modest ground through the morning before perking up some after the London close. There was no data of significance. Wall Street fell, driven by the historic route in oil prices, which saw the May WTI contract print a negative $40/bbl. EUR-USD opened at 1.0850 lows, later printing 1.0887 high, before easing under 1.0860. USD-JPY eased from 107.86 to 107.61, while USD-CAD dropped from 1.4132 highs to 1.4032, then bouncing over 1.4120 as oil prices turned negative. GBP-USD headed to 1.2487 highs from early lows of 1.2415.

    [EUR, USD]
    EUR-USD printed U.S. highs of 1.0887, up from opening lows of 1.0850, in relatively light trade. Softer Treasury yields have weighed on the Dollar slightly this morning, though the pairing remains well inside of recent trading ranges. EUR-USD support comes sat 1.0812, which was Friday's low, with resistance at 1.0918, representing the 20-day moving average.

    [USD, JPY]
    USD-JPY posted an inside day on Monday, opening the N.Y. session at 107.86, later easing to 107.61 after the London close. Risk-off conditions weighed slightly, though overall, the FX market was largely in consolidation mode. The Yen is likely to continue to move in step with risk taking levels, and with the course of the pandemic still very uncertain, we suspect further JPY gains could be in the cards as the global economic recovery will not likely be in a straight line.

    [GBP, USD]
    Cable headed higher after opening the N.Y. session near 1.2415, later peaking at 1.2487. The pair remained within Friday's range, and is entering a third consecutive week of trading without a clear directional bias. Post-Brexit negotiations are recommencing this week via video conferencing, though market participants remain too preoccupied with the pandemic and dealing with the economic devastation caused by global lockdowns than they are about Brexit matters.

    [USD, CHF]
    EUR-CHF was range bound in N.Y. trade on Monday, breaking a streak of four straight down days, giving the cross a bit of breathing space from the March 9 five-year low into. Hopes to end global lock down resulted in a risk-off session, allowing EUR-CHF to head to 1.0520 highs. Assuming the coronavirus crisis persists, as looks highly likely, this should maintain Swiss franc's safe haven premium, which should keep EUR-CHF directionally biased to the downside.

    [USD, CAD]
    USD-CAD rallied to 1.4132 into the North American open, after starting the Asian session at 1.4003.The plunge in May WTI crude prices, along with general risk-off conditions supported the pairing overnight. USD-CAD since eased back to 1.4032 lows, as June WTI crude steadied above lows, and as stocks open lower, but at better levels than futures indicated earlier. Support comes in at the 1.4000 level, with resistance at Thursday's high of 1.4182. May WTI crude, which expires on Tuesday, printed historic lows at -$40.00/bbl into the close, allowing USD-CAD to climb back over 1.4100.

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