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By XE Market Analysis December 5, 2014 2:57 pm
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    XE Market Analysis: Asia - Dec 05, 2014

    The dollar soared to trend highs against the euro, yen and CAD in N.Y. trade on Friday, following a much stronger than expected November U.S. employment report. The NFP print handily beat expectations, while an added bonus was an uptick in hourly earnings. EUR-USD touched 1.2272 lows, after opening the session near 1.2370. USD-JPY shot up to near 121.70 highs, from pre-data levels around 120.40. The combination of a softer Canadian jobs report, and weaker oil prices took USD-CAD to 1.1476 highs, levels last seen in July of 2009. Equities stumbled initially on the jobs report, as the knee-jerk reaction favored quicker action from the Fed, though eventually, the equity market took the good jobs news as good news, and rallied into the close. Yields shot up, also supportive of the dollar.

    [EUR, USD]
    EUR-USD posted new trend lows of 1.2272 after the U.S. jobs report, and ran into offers at 1.2300 for much of the morning. Pre-weekend short should supported into the London close, resulting in a move to 1.2307 highs, though following the raised prospects for ECB QE in January, and a seemingly strengthening U.S. economy, the euro will continue to be sold into any signs of strength.

    [USD, JPY]
    USD-JPY popped to 121.38 in the immediate aftermath of the jobs report, before easing back into 121.00 where it found solid support. From there, it was off to the races again, with the pairing eventually peaking at 121.68 by mid-morning. A buoyant Wall Street, and firmer Treasury yields provided dollar support through the afternoon session.

    [GBP, USD]
    Cable traded into 1.5570 from 1.5680 after the strong U.S. jobs report, and struggled to reclaim the 1.56 handle through the session. The dollar's overall strength weighed on the pound, which is looking to have established equilibrium in the mid-1.50s after a five-month decline from highs near 1.7200.

    [USD, CHF]
    EUR-CHF has continued to ply a narrow range above 1.2020, giving the SNB a little space between spot levels and its rumoured buffer zone between 1.2010 and the 1.2000 franc cap. Foreign currency reserves data out of Switzerland showed an increase to CHF 462.4 bln in November from CHF 460.0 bln in September. This prompted market speculation that the increase was as a consequence of intervention, though the SNB refrained from providing an explanation.

    [USD, CAD]
    USD-CAD popped to 1.1443 from near 1.1395 in the aftermath of the mix of data, where Canadian jobs data missed the mark as U.S. NFP surged, and the U.S. trade deficit widened, while the Canadian surplus shrank. Monday's 1.1459 high became initial resistance, though with oil prices finding some support from the strong U.S. jobs report, USD-CAD upside temporarily stalled. The pairing later reacted to the latest slump in oil prices, taking out stops over Monday's 1.1459 highs, and November's trend high of 1.1466, eventually peaking at 1.1476. NYMEX futures traded near $65.70, down over $1/bbl from session highs. USD-CAD resistance is now seen at 1.1500.

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      kumarmatka30's picture
      kumarmatka30 Posts: 4

      Just Checking old records for research and analysis.


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