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By XE Market Analysis February 6, 2019 3:14 pm
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    XE Market Analysis: Asia - Feb 06, 2019

    The Dollar advanced again in N.Y. on Wednesday, taking the DXY to near two-week highs of 96.40. The index has printed four consecutive higher daily highs. On the data front, the narrowed U.S. trade deficit supported the Greenback. EUR-USD fell to 1.1362 lows, after opening at 1.1398 highs, while USD-JPY touched 110.00 highs late in the session. USD-CAD printed 1.3210 highs, while Cable fell to 1.2933 lows.

    [EUR, USD]
    EUR-USD printed near two-week lows of 1.1362 in afternoon dealings, with softening EU data weighing on the Euro. The latest disappointment was Germany manufacturing orders, which were well under expectations. In coming U.S. data however, has been fairly solid, and the combination should keep EUR-USD under pressure. Next support comes at 1.1300-1.1298.

    [USD, JPY]
    USD-JPY was again quiet through the N.Y. session, managing a range of just 109.65 to 109.85 in morning trade. The pairing took another run at 110.00 overnight, peaking at 110.06 briefly, before again pulling back. The level has been a tough one for nearly three-weeks, with sellers still apparently parked there. Later, the pairing again printed 110.00, but follow through was lacking.

    [GBP, USD]
    Cable slipped from N.Y. highs of 1.2980 to 1.2933 after the London close. On the Brexit front, a Bloomberg article, citing sources, said that the government is not expecting Brussel's to make any concessions with regard to the Irish backstop. This is of course perfectly plausible given the EU's near perfect state of implacability on the Irish issue. European Council President Tusk raised a few eyebrows, saying in a speech that there is a "special place in hell, for "those who promoted Brexit without even a sketch of plan of how to carry it out safely." Parliament is due to vote on the Withdrawal Agreement again next Wednesday, though if there aren't any amendments, as is looking likely to be the case, then the prime minister would most likely call the vote off and return the issue to parliamentary debate.

    [USD, CHF]
    EUR-CHF has settled near the 1.1400 level, holding below last week's 11-week high at 1.1429. The cross has been going through phase of relatively high volatility, which has produced several bouts of pronounced underperformance in the Swiss franc, which have often been accompanied by talk/suspicions of SNB intervention.

    [USD, CAD]
    USD-CAD was rangebound through the North American morning session, peaking at 1.3197 before slipping to 1.3170 lows. The pairing moved slightly higher following the Ivey PMI miss, though has since steadied near 1.3180 following the EIA U.S. oil inventory figures, which lifted WTI crude prices slightly. The pairing later topped at 1.3210. USD-CAD found support overnight ahead of the 200-day moving average, currently at 1.3130.

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