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By XE Market Analysis February 27, 2014 4:40 pm
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    XE Market Analysis: Asia - Feb 27, 2014

    The dollar was again mixed in N.Y. trade on Thursday, losing ground to the euro, pound and CHF, while posting modest gains versus the yen and CAD. U.S. data was a bit worse than expectations, as jobless claims rose, and durable goods orders were soft (though better ex-trans). Overall though, risk taking levels improved, taking Wall Street higher. EUR-USD initially struggled to trade over 1.3680, though eventually took out stops over the figure, on its way to 1.3726 highs. USD-JPY, which had slid to 101.73 lows in London, later reclaimed the 102 handle, peaking at 102.21. Cable tested 1.6700, though again failed to take out the figure.

    [EUR, USD]
    EUR-USD inched higher in early trade, trading to 1.3680 after finding buyers under 1.3650. Gains were initially limited to 1.3690, where standing offers were parked, though eventually made a move higher. EUR-USD peaked at 1.3725, tripping light stops just over the figure. Intra day accounts were reportedly active buyers from over 1.3695, though dealers notes sellers returning from 1.3720. Looking ahead, geopolitical jitters should generally support the dollar.

    [USD, JPY]
    The dollar moved a touch higher after the better ex-trans durables print, and slightly firmer jobless claims outcome. USD-JPY ticked up toward 102.00 from 101.90. and later, as Wall Street turned positive, rallied to highs over 102.20. The pairing continues to spend little time under 102.00, though today's 101.72 base was a one-week low, Support is seen at 101.67, the February 20 low.

    [GBP, USD]
    Cable rallied to 1.6699 highs in N.Y. trade, following EUR-USD higher. The pairing again failed at teh 1.5700 level, turning to a narrow 1.6680-90 band through the remainder of the session. BoE has expressed concern about the level of sterling, which seems to have been indirectly referenced by a bout of dovish BoE-speak over the last few days.

    [USD, CHF]
    EUR-CHF fell to a 1.2157 low after breaking below the Dec-17 cycle low of 1.2167, taking the cross to its lowest levels since April last year. The Swiss currency is following its usual outperforming pattern during periods of risk aversion, this time with market confidence shaken by the unravelling Ukraine situation and associated concern of broader geopolitical tensions. The cross backed up over 1.2180 in N.Y. trade, with market players nervous staying short under 1.2200.

    [USD, CAD]
    USD-CAD remained firm through the session, posting highs near 1.1160, the best of the week. The market will eye last Friday's 1.1194 peak, though sellers are said to be lining up from 1.1190-1.1200. Stops will likely be a factor from 1.1210. Intra day profit taking took the pairing back toward 1.1130, though fresh buyers stepped in quickly, moving it toward 1.1150 into the close.

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