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By XE Market Analysis July 24, 2014 12:54 pm
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    XE Market Analysis: Asia - Jul 24, 2014

    The dollar was broadly firmer in N.Y. trade on Thursday, with mixed data and marginally improved risk levels supporting. Jobless claims were the lowest since 1006, while Markit PMI miss forecasts somewhat. New home sales were soft, but overall, better China and EU data helped sentiment. Yields trended higher, while Wall Street posted modest gains. EUR-USD was not able to test the London low of 1.3438, though after opening over 1.3480, the pairing was unable to trade over 1.3475 through the remainder of the session. USD-JPY was supported by firmer yields and better risk levels, touching 101.63 highs. Cable tripped sell stops at 1.7000, trading the 1.69 handle for the first time in nearly a month. USD-CAD moved up over 1.0740, likely on the softer U.S. housing data, and softer oil prices.

    [EUR, USD]
    EUR-USD posted new trend lows of 1.3438 in early London trade, after moving sideways near 1.3460 through the Asian session. The losses were short lived however, as the pairing jumped to a high of 1.3484 in the wake of the unexpected bounce in Eurozone PMI readings, which were boosted by a sharp rebound in services confidence. The euro was then steady through the N.Y. session, managing 1.3480 highs at the open, while touching a low of 1.3458.

    [USD, JPY]
    USD-JPY touched one-week highs of 101.83 by mid-morning, buoyed by firmer U.S. yields, and better risk levels. The pairing ran into resistance over 101.80. Offers are still seen layered up to 102.00, with Japanese exporters on the offer. The move over the July 16 high of 101.79 is a supportive development, though we suspect it will be a tough slog to get to the 102.00 handle.

    [GBP, USD]
    GBP-USD gave up the 1.7000 handle, falling to lows of 1.6967, the lowest print in nearly a month. Stops were noted on the move under 1.7000, though buyers were seen returning near the June 26 low of 1.6972. The sterling market remains long overall, and even moderately bad news appears to be having a more of an impact on the currency. Today's selling pressure came on the back of U.K. retail sales, which missed forecasts, though were by no means terrible.

    [USD, CHF]
    EUR-CHF eased toward 1.2140 level in N.Y. The situation in Gaza, Iraq and Ukraine are continuing to underpin the Swiss currency's safe-haven premium, though the cross has remained above the Jun-30 low at 1.2133, which was the lowest level seen in three-and-a-half months. Technically, the break of a former uptrend channel support line at 1.2190 opened the way to the mid-1.21s.

    [USD, CAD]
    USD-CAD moved inside of its Wednesday trading band, basing at 1.0719, while peaking at 1.0743, and remaining near the bottom of its recent range into the North American open. With risk appetite seemingly on the mend after some good PMI data, a test of 1.0700 seems inevitable in the near term. Softer U.S. housing data, and softer oil prices may have provided some support, as USD-CAD moved to highs of 1.0747, from lows of 1.0720. Corporate bids are seen at 1.0700, with stops underneath. Another band of buying interest is seen from 1.0670. Offers are in place from 1.0770.

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