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By XE Market Analysis January 11, 2019 2:39 pm
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    XE Market Analysis: Asia - Jan 11, 2019

    The dollar rallied broadly in N.Y. on Friday, despite the benign CPI print. This saw EUR-USD fall to intra day lows of 1.1458 from 1.1535 early, and USD-JPY to 108.60 from 108.15. Talk of Turkish troop movement near the Syria border has been making the rounds, which could have prompted some safe-haven flow into the USD. London names have reportedly been selling EUR-USD on pre-weekend profit taking, after the pairing failed to advance beyond Thursday's near three-month high of 1.1571.

    [EUR, USD]
    EUR-USD fell from post-CPI highs of 1.1536 to a low of 1.1485 at mid-morning. A round of pre-weekend paring of short dollar positions out of London was reported, following a week which saw a dovish turning Fed weigh on the dollar broadly.

    [USD, JPY]
    USD-JPY shot up from 108.15 lows early in the session, despite the benign U.S. CPI outcome and a soggy risk backdrop. General USD short covering was noted, while safe haven flows on reports of Turkish troop movements near the Syria border reportedly helped the pairing higher. The Dollar topped at 108.60 before later finding support ahead of 108.30.

    [GBP, USD]
    Sterling finished the week stronger, bolstered by a report in the London Evening Standard citing Cabinet ministers saying that Brexit will have to be delayed due to legislative congestion in the likely event that Parliaments rejects the EU Withdrawal Agreement at next Tuesday's vote. Cable printed a six-week high at 1.2866 after the London close.

    [USD, CHF]
    EUR-CHF traded to near 1.1270 lows in N.Y. on Friday, as EUR-USD fell amid a general round of pew-weekend Dollar short covering. amid a backdrop of revived risk appetite in global markets. The cross had last week punched out a four-month low at 1.1184, which was seen as the Swiss franc picked up safe haven demand in the wake of Apple's revenue warning (which in turn followed December manufacturing PMI data showing weakening across key global economies). The SNB remained firmly on hold at its quarterly policy meeting last month, continuing to rely on the combination of negative interest rates and the threat of intervention to limit appreciation in the currency in times of heightened uncertainty about the global outlook.

    [USD, CAD]
    USD-CAD rallied to 1.3276 highs on the back of WTI crude oil price declines, risk-off conditions and a generally stronger Greenback. The pairing rallied from just under 1.3200 at the North American open. The dovish shift in Fedspeak seen since Powell's speech last Friday, along with the surge in oil prices have allowed USD-CAD to sell-off quite sharply this week.

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