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By XE Market Analysis July 14, 2017 2:52 pm
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    XE Market Analysis: Asia - Jul 14, 2017

    The dollar hit the skids in N.Y. on Friday, with cooler CPI and weak retail sales driving the greenback lower. The DXY hit nearly 10-month lows of 95.14, which left EUR-USD at 1.1468 highs, and USD-JPY at two-week lows of 112.26. USD-CAD printed near 14-month lows of 1.2627, while cable clocked 10-month highs of 1.3093.

    [EUR, USD]
    EUR-USD ramped up to intra day highs of 1.1468 after the damp early U.S. data, then later eased back to 1.1436 on the better industrial production outcome. Since then, the pairing has been on the rise, now back to just under earlier highs. The data, along with flagging yields, and a slightly lowered expectations for another Fed rate hike this year, may well continue to support the euro.

    [USD, JPY]
    USD-JPY took it on the chin after the soft retail sales and cooler CPI figures released earlier, dropping under its 20-day moving average at 112.61, to base at a two-week low of 112.27. The pairing recovered to 112.72 in subsequent trade, though has remained heavy after London went home for the weekend. The pairing has not closed under its 20-day moving average since June 14, though has a decent chance to do so today.

    [GBP, USD]
    Cable ramped up to near 10-month highs of 1.3093 in N.Y. on Friday, though the move was more a function of dollar weakness than sterling strength. Weak U.S. data sank the greenback broadly, though cable is not out of the woods just yet, as U.K. political and Brexit uncertainty remain going forward.

    [USD, CHF]
    EUR-CHF rallied to new 11-month highs of 1.1073 in N.Y. on Friday, with gains coming on the back of a firmer EUR-USD. The cross remains over 2.0% up on levels prevailing in late June, having gained amid a broader bid in the euro following a batch of signals from ECB policymakers that have collectively affirmed that policy tapering is on the table. The policy shift will be welcome by Swiss policymakers after Switzerland's inflation dipped to just 0.2% y/y in June data, down from 0.5% in May and threatening a return of deflation.

    [USD, CAD]
    USD-CAD fell to 14-month lows of 1.2651, the pairing weighed down by the combination of higher oil prices, and a broadly weaker greenback, which came on the back of cooler CPI and weak retail sales, and a pullback in U.S. consumer sentiment data earlier in the session.

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