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By XE Market Analysis April 24, 2020 2:11 pm
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    XE Market Analysis: Asia - Apr 24, 2020

    The Dollar traded slightly lower in London morning dealings, before steadying inside of narrow ranges through the N.Y. session. The DXY ranged between 100.25 and 100.49 through the U.S. session. Markets continued to look through the data, as March durable orders slid much more than expected, but had little impact on the FX market. Wall Street struggled for direction through most of the session, while Treasury yields were mixed. EUR-USD ranged between 1.0785 and 1.0820, while USD-JPY eased from 107.67 to 107.40. USD-CAD rallied to 1.4120 from 1.4040, as Cable topped at 1.2363, and found a floor at 1.2320.

    [EUR, USD]
    EUR-USD recovered to 1.0820 highs in N.Y., after printing one-month lows of 1.0727 in London morning trade. The move lower came on follow through selling after EU leaders failed to agree on a EUR 1.0 tln pandemic recovery fund. After four consecutive sessions of lower daily lows, EUR-USD has perked up on the back of pre-weekend short covering.

    [USD, JPY]
    USD-JPY consolidation continues into the weekend, with the pairing posting a 108.04 to 107.28 range through the entire week. N.Y. trad on Friday has seen the pairing stuck between 107.67 and 107.40. Focus will shift next week to the BoJ meeting, where there have been reports the Bank may up its JGB and corporate bond purchases. The news saw USD-JPY spike briefly to highs of the week, though were not sustainable. Given the pandemic, reports of Yen repatriations have been noted, expected to limit USD-JPY upside potential.

    [GBP, USD]
    Cable slipped from opening highs over 1.2375, later bottoming at 1.2320. Weak U.K. data had little lasting impact on the Pound, as Thursday's ugly PMIs and Friday's soft retail sales were largely looked through. GBP-USD steadied through the second half of the week, after coming under some pressure earlier. As most Dollar pairings this week, Cable remained in consolidative mode.

    [USD, CHF]
    The SNB has successfully been putting a cap on the franc, which has seen EUR-CHF in recent weeks skirt along just above the five-year low that was first seen on March 9th at 1.0505 without breaching it. Weekly sight deposit data out of Switzerland has pointed to the extent of SNB franc selling over the pandemic crisis period, which was most acute in March before basing out as global governments and central banks acted with interventions and stimulus packages.

    [USD, CAD]
    USD-CAD rallied to 1.4108 highs, up from 1.4024 lows seen into the North American open. WTI crude has come off the boil, which has supported the pairing, as WTI crude eased under $16.50 from highs near $18.00. Canadian oil prices remain in positive territory after sliding under zero earlier in the week, but continue to trade a huge discounts to U.S. WTI crude. Rapidly filling storage capacity will likely result in further cuts to Canadian production, which should keep CAD upside limited for now.

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