Home > XE Currency Blog > XE Market Analysis: Asia - Jun 08, 2020

AD

XE Currency Blog

Topics7381 Posts7426
By XE Market Analysis June 8, 2020 2:11 pm
    XE Market Analysis's picture
    XE Market Analysis Posts: 5305
    XE Market Analysis: Asia - Jun 08, 2020

    FX trade was fairly quiet in N.Y to start the week, though the Dollar overall remained under some pressure. The DXY traded from just over 97 to lows of 96.66 by late morning. There was no incoming data to move markets, though Wall Street posted further gains, and Treasury yields edged higher as economic reopening hopes strengthened. EUR-USD hit 1.1319 highs, up from early lows at 1.1269. USD-JPY fell to 108.24 from 109.36. USD-CAD touched 1.3367 lows, later bouncing to 1.3400. Cable headed from opening lows of 1.2655, later peaking at 1.2705.

    [EUR, USD]
    EUR-USD found buyers into the N.Y. open, resulting in the pairing rallying from 1.1269 to 1.1319 highs. The Dollar has been generally under pressure through the session, as risk-on conditions remain, continuing to see safe-haven USD flows reverse. EUR-USD today was unable to trade above the high of 1.1385 seen on Friday, at the end of its near two-week run of higher daily highs, which may now mark a period of consolidation.

    [USD, JPY]
    USD-JPY hit a four-session low of 108.24 after the London close, coming from 109.46 highs seen at the N.Y. open. The pairing appears to have been driven lower on profit taking related selling, after posting gains every day last week, as risk-on conditions prevailed. A failure to breach the key 110.00 level may have prompted some selling, which picked up momentum through the morning session on Monday. From here, support comes at the 200-day moving average, currently at 108.40.

    [GBP, USD]
    Cable rallied to 1.2705 in N.Y. after recouping from the low seen during the London morning, at 1.2628. The low was a product of news from the UK-EU trade negotiation front, specifically the decision by EU fisheries ministers not to change course on their position -- to maintain the "status quo", as the EU's chief negotiator Barnier put it. This "skewed things late in the process," according to a Downing Street source cited by the Guardian. Broad USD weakness allowed the pound to recover into the London close.

    [USD, CHF]
    Recent euro gains have been a boon to EUR-CHF, which is now trading at its best levels of the year, above 1.0850. The SNB had been defending an informal line-in-the-sand at 1.0500 since early March in an effort to limited franc appreciation and, thereby, disinflationary forces on the Swiss economy.

    [USD, CAD]
    USD-CAD headed to trend lows of 1.3393 from 1.3440 following the shock increase in Canada employment, where 290k jobs were added, versus consensus for a -500k outcome. The pairing had been on the decline earlier in the session, as WTI crude rallied 5% to three-month highs of $39.55. The next USD-CAD downside target comes at 1.3377, which represents the March 6 low.

    Paste link in email or IM