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By XE Market Analysis April 21, 2015 3:16 pm
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    XE Market Analysis: Asia - Apr 21, 2015

    The dollar was mixed through the N.Y. session on Tuesday, rising slightly, before falling versus the euro, staying firmer versus the yen, CAD, while losing ground to sterling. There was no data on the U.S. calendar, though slipping risk appetite saw stocks trade lower. Yields however, moved higher. EUR-USD found support into 1.0680, and eventually rallied to 1.0781 into the London close. USD-JPY rose from 119.40 to peak over 119.80, right at the 50-day moving average, before pulling back to 119.50. USD-CAD stopped just short of 1.2300, gaining altitude from 1.2250 lows, as oil prices eased back.

    [EUR, USD]
    EUR-USD found support into the 1.0680 region through the morning session, before making a steady advance to 1.0781 highs. Some option backed buying was noted from London earlier, along with intra day short covering. The dollar faded overall on the back of a softer risk backdrop this morning, though ahead of Friday's Eurogroup meeting with Greece, where no conclusion to the crisis is expected, euro upside would appear to be limited.

    [USD, JPY]
    USD-JPY peaked at 119.83, just over the overnight high, before heading into 119.55. Perhaps not so coincidentally, the 50-day moving average sits at 118.81. Range trade mentality is in full force, and indeed the pairing has plied a 118.50 to 120.50 trading band since Mid-March. Intra day support now lies at 119.20.

    [GBP, USD]
    Cable extended to a six-day low of 1.4856 in London, trading largely in step with EUR-USD, though EUR-GBP saw some downside drift amid general euro underperformance. Cable capped out at one-month peak of 1.5053 on Friday, which stalled just shy of the 200-day moving average. N.Y. trade saw GBP-USD rebound with EUR-USD, moving back over 1.4970, before pulling back modestly.

    [USD, CHF]
    EUR-CHF drifted to 10-week lows under 1.03, the lowest since January 29 despite the latest euro bounce versus the dollar. The SNB will probably be best advised to sit on its hands during the Greek crisis, although the SNB said at its March policy review that the franc is "significantly overvalued and should continue to weaken over time," and that it will continue to take account of the franc rate situation in policy decisions and "remain active in the foreign exchange market, as necessary."

    [USD, CAD]
    USD-CAD was near intra day lows, trading at 1.2225 early in the session, after basing at 1.2215 into the open. The 100-day moving average, currently at 1.2220 provided support, as did talk of option backed bids parked at 1.2200. Sell stops are expected under 1.2180, which was Monday's low, though as oil prices fell, the pairing rallied back to 1.2300.

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