Home > XE Currency Blog > XE Market Analysis: Asia - Jan 29, 2019


XE Currency Blog

Topics6300 Posts6345
By XE Market Analysis January 29, 2019 3:04 pm
    XE Market Analysis's picture
    XE Market Analysis Posts: 4309
    XE Market Analysis: Asia - Jan 29, 2019

    The Dollar was quite steady through the N.Y. session on Tuesday, ticking down slightly after a much weaker U.S. consumer confidence print, though holding its own over all. EUR-USD dipped to 1.1411 from 1.1445 into the open, while USD-JPY peaked at 109.54 early, before slipping to 109.28 lows. USD-CAD bottomed at 1.3242, then drifted up over 1.3275. Cable was soft ahead of the Brexit votes.

    [EUR, USD]
    EUR-USD moved back to session lows of 1.1411, after having rallied modestly following the U.S.consumer confidence miss. The German government's downgrade of 2019 growth to 1.0% from 1.8%, according to the Handelsblatt newspaper, appears to have had an impact on the Euro most recently, though traders will likely keep their powder dry ahead of any U.S./China trade negotiation news.

    [USD, JPY]
    USD-JPY matched last week's low of 109.14 after the close on Monday, since rallying to 109.54 highs as U.S. equity futures turned earlier losses into modest gains ahead of the Wall Street open. Upside progress is expected to be limited over the next couple of days, as traders watch for signs of trade progress as U.S. and China officials meet in Washington. News of progress will support stocks and USD-JPY, while the opposite will be true in the case of no breakthroughs.

    [GBP, USD]
    Cable pulled back from 1.3199 highs into the London close and ahead of the parliamentary Brexit votes, bottoming at 1.3125. The parliamentary votes were under way at the time of this writing.

    [USD, CHF]
    EUR-CHF headed over 1.1370 in N.Y. on Tuesday, as EUR-USD popped over 1.1400. The CHF move lower came in delayed fashion to SNB Chairman Jordan saying, via a Bloomberg TV interview in Davos, that "current monetary policy is the right one and we will continue to with it for some time." He said that for 2019 the biggest concerns are "political mistakes," pointing to the U.S.-China trade war and "Brexit and the European situation." Jordan also expressed concern about further safe-haven driven franc appreciation, "especially" in a no-deal Brexit scenario.

    [USD, CAD]
    USD-CAD has been well contained since Monday's close, trading inside of yesterday's band, and ranging between 1.3266 and 1.3244 since the North American open. The bounce seen in crude oil prices this morning has limited the pairing's upside, as WTI crude reclaims the $53 handle, and is up nearly 2.5% on the day. USD-CAD support comes at 1.3201, with resistance at 1.3286.

    Paste link in email or IM