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By XE Market Analysis February 22, 2018 2:59 pm
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    XE Market Analysis: Asia - Feb 22, 2018

    The dollar moved off of its eight session hi in N.Y. trade on Thursday, leaving the DXY at 89.64 lows, down from 90.23 overnight highs. Incoming data was better than expected, as jobless claims fell, and leading indicators were better than forecast. There was little FX reaction however. Risk appetite picked up, with Wall Street posting solid gains, which lately has been a dollar negative, perhaps as safe-haven buying dries up. EUR-USD topped at 1.2352 from 1.2265 lows, while USD-JPY was rangebound over 106.65. USD-CAD spiked up on weak retail sales befrore falling back on sharply higher oil prices. Cable rallied from 1.3877 to 1.3989 highs.

    [EUR, USD]
    EUR-USD has moved higher with Wall Street, topping earlier at 1.2352 after opening at 1.2265. The euro took the softer German Ifo data in stride, and has maintained altitude as the dollar overall has reversed lower. The pairing's streak of four daily lower highs will remain intact as long as 1.2359 is not breached, with the next resistance level at the 20-day moving average of 1.2373.

    [USD, JPY]
    USD-JPY was relatively steady through the N.Y. session on Thursday, touching a low of 106.66 before bouncing to 107.07 into the London close. Japanese fiscal year-end related repatriation flows weighed on the pairing, though the improved risk backdrop put a floor under USD-JPY.

    [GBP, USD]
    Cable tracked EUR-USD higher on the back of a softer dollar, while holding net lower-on-the-day levels versus the euro and yen, among other currencies. An unexpected downward revision in UK Q4 GDP, in the second release estimate, imparted an underperforming bias in in the pound.

    [USD, CHF]
    EUR-CHF has been in consolidation mode in the 1.1500s over the last week after breaking lower in the week before, when a four-month low at 1.1446 was seen. The revival in risk appetite has helped prop up the cross.

    [USD, CAD]
    USD-CAD rocketed to two-month highs of 1.2758 from 1.2700 following the much weaker Canada retail sales outcome. Stop loss buying was noted over the 200-day moving average of 1.2717. The move marked the first time the pairing has topped the 200-day since June of last year. Firmer oil prives later saw a bottom of 1.2672, though it reclaimed the 1.27 handle into the close.

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