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By XE Market Analysis June 28, 2013 4:41 pm
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    XE Market Analysis: Asia - Jun 28, 2013

    Month and quarter end conditions resulted in a choppy FX market on Friday, seeing the dollar first rally, before unwinding some of its moves into the London close. U.S. data was mixed, with the Chicago PMI softer than expected, and Michigan sentiment holding up fairly well. Equities sold off on Fedspeak, as Stein used the word "September" for a hypothetical taper start. Stocks likely suffered from month end selling as well, following a couple of days of sharp gains.

    [EUR, USD]
    EUR-USD edged out session highs over 1.3100. The FX market has largely ignored movement across stock and bond markets, with the impetus coming from orders related to quarter-end. With buyers done, the pairing quickly turned lower throughout the course of the morning. The euro put in a low near 1.2990 before reclaiming the 1.30 handle in afternoon dealings.

    [USD, JPY]
    USD-JPY and the JPY crosses were well bid in Asia in heavy quarter-end trade. There was demand from offshore names related to quarter-end, along with increased speculative flows as broadly positive Japanese data boosted stocks. That trend continued in N.Y., lifting USD-JPY to 99.45. The pairing remained bid through the session.

    [GBP, USD]
    GBP was guided lower by seasonal flows. Cable topped out around 1.5280 after the European open and headed back towards 1.5230 amid EUR-GBP demand.Cable selling picked up steam after the U.S. open, with the pairing touching 1.5165 lows. Corporate bids quickly stepped back inthough allowing the pound to settle in over 1.5200 at the close.

    [USD, CHF]
    EUR-CHF edged up through offers at 1.2350 into the N.Y. open, before month end backed selling stepped in. The Swiss KOF leading indicator pointed to further improvement in the Swiss economy despite coming in a bit weaker than market expectations. The CHF continued to underperform amid ongoing momentum fund activity. USD-CHF headed back towards the 0.9470 area from the 0.9430 region at the European open. Dip buying has persisted since USD-CHF broke up through the 100-dma on Wednesday. EUR-CHF posted a strong gain on Thursday amid solid Swiss demand. London sources said EUR-CHF has had more potential to rally now that one large fund name had finished unwinding a position related to emerging market exposure.

    [USD, CAD]
    USD-CAD pulled back from the 1.0500 high after the Canadian data, which was largely in-line with expectations. Offers at the figure held the topside, and subsequent selling took the pairing back near 1.0470. Later, USD-CAD pushed through offers at 1.0500, making it up to 1.0553, where more aggressive selling stepped in. The pairing slipped back to the figure into the London close, though dealers said fresh bids moved in down to 1.0480, perhaps quarter end related.

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