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By XE Market Analysis March 3, 2014 2:45 pm
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    XE Market Analysis: Asia - Mar 03, 2014

    The dollar traded with a firmer bias through the N.Y. session, catching a bit of a safe-haven backed bid in the wake of developments in the Ukraine. In addition, better ISM and contsruction spending helped the greenback, depiste equities falling sharply, and yields staying down. EUR-USD traded under 1.3750 from over 13790 in early London, while USD-JPY moved briefly over 101.55 from intra day lows of 101.20.

    [EUR, USD]
    EUR-USD made its way from 1.3780 opening levels, to lows under 1.3735. There was talk early that the Russians may have influenced the euro, with sales of perhaps $10 bln versus the euro. Later the euro was reportedly sold back versus other currencies. This may have helped EUR-USD fade through the N.Y. session.

    [USD, JPY]
    After slipping back to 101.20 into the N.Y. open, USD-JPY managed a high near 101.60, as the dollar generally firmed. Good support was expectyed ahead of 101.00, where Japanese bids were reportedly parked. The escalation of geopolitical tensions over Ukraine, a test firing of two missiles by North Korea, and an eight-month low in China manufacturing PMI may keep the yen on its toes near-term.

    [GBP, USD]
    Sterling traded firmer on U.K. data, which included an above-forecast manufacturing PMI and mortgage approvals. GBP-USD popped up by about 50 pips in making 1.6751. Cable settled back in N.Y. dealings, finding support at 1.6700, as the dollar was generally firmer. A break of 1.6690 though, tripped up sell stops, taking sterling to near 1.6650.

    [USD, CHF]
    EUR-CHF settled slightly higher after dipping to an eight-month low of 1.2104 during the Asia session. USD-CHF is net lower, but has so far remained above the 28-month 0.8777 low seen on Friday. The Swiss currency has obviously been underpinned by the prevailing risk aversion in global markets, but market participants are wary of the threat of SNB intervention ahead of the 1.2000 limit level in EUR-CHF.

    [USD, CAD]
    USD-CAD came off its 1.1109 highs following the firmer Canadian IPPI outcome, though remained supported into 1.1070. Ukraine related risk-off continued to weigh on semtimemt overall, which should keep USD-CAD above noted bids at 1.1040. On the upside, sellers are seen parked from 1.1120.

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