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By XE Market Analysis January 14, 2019 2:43 pm
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    XE Market Analysis: Asia - Jan 14, 2019

    The Dollar ended on a slightly softer footing in N.Y. trade on Monday, though ranges generally were relatively narrow. Due to the U.S. government shutdown, there were no data to move the market. Wall Street opened sharply lower on fallout from the overnight weak China trade data, though managed to pare losses through the session. EUR-USD ranged between 1.1451 and 1.1481, while USD-JPY moved inside of 108.06 and 108.36. USD-CAD managed a 1.3286 to 1.3250 band. Cable settled near 1.2890.

    [EUR, USD]
    EUR-USD printed intra day lows of 1.1451 in London morning trade, and has since managed to rally to 1.1481 highs in relatively light dealings. Recent concerns over Eurozone slowing will likely see ECB's Draghi strike a cautious tone when he presents the Bank's annual report in Strasbourg on Tuesday, and acknowledge that the balance of risks is starting to shift to the downside. Until then, Euro upside should be contained.

    [USD, JPY]
    USD-JPY remains heavy as risk-off conditions prevail, though managed to hold the 108 handle into the N.Y. open, since bouncing modestly to 108.36 highs. Wall Street opened sharply lower on the back of weak China trade data, limiting the pairing's upside, and further equity erosion should see USD-JPY test lower. Last Thursday's 107.77 base is the next downside target.

    [GBP, USD]
    GBP was whipsawed on Brexit news ahead of the London close, that an influential group of pro-Brexit lawmakers would support PM May's Brexit deal on Tuesday, according to an ITV report. Unfortunately, that was shortly followed by news that the pro-Brexit ERG group would vote against the May deal. GBP-USD bolted to $1.2929 session highs before wilting back down to $1.2860, compared to lows of $1.2815 earlier.

    [USD, CHF]
    EUR-CHF eased into the 1.1250 lows in N.Y. on Monday, with risk-off conditions supporting the Franc. 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 topped at 1.3298 in London morning trade, rallying from 1.3254 lows. Fallout from China's weak trade data saw risk taking levels evaporate, which weighed on oil prices, and supported the pairing. WTI crude steadied over the $51 mark, which put a ceiling on USD-CAD for now. Resistance comes at 1.3323, the January 8 high, then at 1.3347, which is the current level of the 50-day moving average.

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