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By XE Market Analysis June 6, 2014 2:26 pm
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    XE Market Analysis: Asia - Jun 06, 2014

    The dollar dipped, then rallied back after the nearly in-line May NFP report on Friday, with reaction overall, fairly muted. Ranges were fairly narrow for the major dollar pairings, with no new ground broken relative to the past two sessions. Risk taking levels perked up, as Wall Street rallied, and as Treasury yields ultimately nudged higher. EUR-USD peaked at 1.3677 before finding a base into 1.3620, as USD-JPY touched 102.12 lows before making its way over 102.60.

    [EUR, USD]
    EUR-USD was jerked around between 1.3673 and 1.3627 immediately after the U.S. jobs report, before making a session highs of 1.3677. From there, the euro eased into 1.3621, matching the London low, before turning sideways on either side of 1.3635. The ECB rate cuts on Thursday were apparently not enough to keep the euro under pressure, with the 1.36 handle holding up easily on Friday. In the coming days however, once market positioning is evened out some, another down leg may well be in the cards.

    [USD, JPY]
    USD-JPY made it to 102.61 highs after bottoming at 102.12 after the jobs report. The risk backdrop was supportive, while the USD in general had been on the rise. Offers are now seen at 102.70-80, though sell orders noted from 102.80-103.00 are now said to be cancelled. Barriers are still in place at 103.00, and will likely be defended.

    [GBP, USD]
    Cable made its way through resistance seen at 1.6824, which represented Thursday's high, touching 1.6846 highs. Gains didn't hold however, as the dollar moved broadly higher. Sell stops were later hit at 1.6800, resulting in a low of 1.6782.

    [USD, CHF]
    EUR-CHF saw a one-month low of 1.2167 on the Swiss CPI data, which came in above expectations at 0.2% y/y in May from 0.0% in April. This is the highest inflation has been in Switzerland since September 2011, which was the month that the SNB implemented the 1.2000 EUR-CHF limit peg as a means to counter exchange rate induced deflation. N.Y. trade saw risk appetite pick up on good U.S. jobs report, allowing the cross to move back over 1.2195.

    [USD, CAD]
    USD-CAD initially slipped to 1.0913 in the aftermath of the U.S. and Canadian jobs reports, though quickly rallied to 1.0942 highs. The mix of Canadian data was the driver, as Canada job gains were all part time in nature, as full time jobs fell sharply. Offers remained into 1.0960, which represents the one-month high posted on Thursday. The pairing later managed 1.0948 highs before turning sideways into the close.

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