Home > XE Currency Blog > XE Market Analysis: Asia - Jul 19, 2013


XE Currency Blog

Topics7368 Posts7413
By XE Market Analysis July 19, 2013 2:16 pm
    XE Market Analysis's picture
    XE Market Analysis Posts: 5292
    XE Market Analysis: Asia - Jul 19, 2013

    The greenback was moderately lower in light Friday N.Y. trade, as some risk came off the table into the weekend. There was no data to absorb, so focus stayed on pre-weekend position adjustments. Equities were softer, as Treasury yields slipped a bit. EUR-USD ran up from lows near 1.3100 to give the 1.3150 level a quick look, as USD-JPY cruised in a tight range over 100.10. Next week's U.S. calendar is fairly light, though housing and confidence data will be of interest. Overall, the dollar may consolidate its recent moves in the coming days, with ranges largely seen holding up.

    [EUR, USD]
    N.Y. sellers took EUR-USD to just above 1.3100 early in the session, though with no follow through under the figure, EUR short covering went through into London close. EUR-USD traded out of 1.3100 and headed back to the 1.3150 region, where commercial offers capped overnight. There is talk doing the rounds that Greece could receive a sovereign upgrade, but it seems unlikely. Meanwhile, some EUR-GBP shorts are being liquidated and forced a move back to 0.8610 after large stops from 0.8590 held. London sources said a break of 0.8590 could be the trigger for a cascade of sell-interest related to layers of sell stops down to 0.8560.

    [USD, JPY]
    USD-JPY made an early run higher in Asia on good demand from Japanese importers, while specs also took heart from the latest MOF flow data, which revealed a marked pick up in demand for foreign bonds. However, after the Tokyo fix profit taking set in as the Nikkei reversed early gains and plunged more than 2.5%, leaving it around 1.5% lower on the session. FX players were caught long of dollars, and ultimately bailed, taking the pairing to near 100.10 at the N.Y. open. U.S. trade was uneventful, with 100.10 to 100.40 containing.

    [GBP, USD]
    Some EUR-GBP shorts were liquidated through the morning, and forced a move back over 0.8615 after large stops from 0.8590 held. London sources said a break of 0.8590 could be the trigger for a cascade of sell-interest related to layers of sell stops down to 0.8560. Cable meanwhile, moved modestly higher, posting better than one-week highs of 1.5280.

    [USD, CHF]
    CHF consolidated at easier levels. EUR-CHF is trading close to the 1.2375 area as EUR is being supported by light dollar outflows since the Asia open. USD-CHF eased off the 0.9450 area and is traded close to the 0.9400 area. However, it is still expected to meet persistent demand on dips as the rebound out of the 200-dma on Wednesday is a positive lead.

    [USD, CAD]
    USD-CAD traded a narrow 1.0360-90 range overnight, though was pressured early in the session by the AUD-USD pop higher, which came on the back of PBoC lending reforms. USD-CAD slipped to 1.0365 from near 1.0390 before recovering again. USD-CAD later attempted to head lower again, moving back to North American lows near 1.0356. Good bids remain in place at 1.0350, according to sources, with the level providing support since late last week. With it being Friday, there was not enough push left in the market this week for a break out, though some suggest should USD-CAD linger under 1.0380, the noted bids at 1.0350 may be pulled, which could open up the 1.0300 region early next week.

    Replies: XE Market Analysis: Asia - Jul 19, 2013

    ▲ Sort Comments
      thieryfred's picture
      thieryfred Posts: 1

      We are the best producer of high quality real  documents , passport , ID card Drivers License etc:
      Australia, all EU countries , Brazil, Canada, Finland, , Israel,
      Mexico, Netherlands, South Africa, , United Kingdom, etc.
      To get mlore  additional information and place the order You can address all your questions and demands by the email addresses.)

      Contact e-mail:( thiery_fredt@yahoo.com )

      Paste link in email or IM