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By XE Market Analysis April 25, 2014 1:41 pm
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    XE Market Analysis: Asia - Apr 25, 2014

    FX trade was again lackluster on Friday, with little in the way of price action, and light volumes changing hands. EUR-USD idled inside a 1.3830-48 range, while USD-JPY moved briefly to 101.97, before recovering to 102.21. Some corporate earnings misses, along with geopolitical tensions in the Ukraine kept Wall Street well under water through the session, which also pushed Treasury yields lower. The markets shrugged off a slightly softer services PMI, and firmer sentiment data. Next week could be a different story for the dollar however, with key events such as the BoJ meeting, the FOMC meeting, and U.S. April jobs data on deck.

    [EUR, USD]
    EUR-USD's less than 20 point trading range on Friday did not inspire much interest, with traded volumes said to have been very light. It seemed fitting to end the week as quiet as the rest of the week was, and perhaps traders are gearing up for next week, when there will be plenty of risk events on tap. EUR-USD was stuck inside of 1.3830-48 through the session.

    [USD, JPY]
    USD-JPY moved to 101.97 after opening near 102.10, its lowest level in seven sessions. The soft risk backdrop weighed through the morning, though the pairing managed 102.20 highs later in the session. The lack of bounce however, could bring selling interest from 101.80 to bear next week, and into the BoJ meeting.

    [GBP, USD]
    Sterling firmed on retail sales data out of the U.K., which unexpectedly rose in the m/m figure for March. Cable capped out at 1.6830, easing back under 1.6800 in very light N.Y. trade.

    [USD, CHF]
    SNB's Jordan repeated that the central bank stands ready to take further action to defend the currency peg and that any rate hikes are still a long way off. This may have helped support EUR-CHF into the 1.2185 region, though ongoing strife in Ukraine will keep the franc supported.

    [USD, CAD]
    USD-CAD trade was less than inspiring as well, with the pairing stuck inside of 1.1000-50 virtually the entire week. The BoC would like to limit the CAD's rise going forward, in order to help the export sector, though Canadian fundamentals remain fairly positive for the loonie.

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