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By XE Market Analysis March 13, 2014 3:25 pm
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    XE Market Analysis: Asia - Mar 13, 2014

    The dollar was mixed in N.Y. trade, with direction determined largely by fresh angst in the Ukraine. Safe haven dollar demand versus the euro was the major driver behind EUR-USD's drop, with anticipated Crimea annexation giving way to fear of a deeper crisis in Eastern Ukraine. The yen retained a safe haven role as well, as USD-JPY slid under 101.60 from highs over 102.80. USD-CHF meanwhile, sat close to a two-year low, though got a small boost from EUR-USD's break lower. On the data front, claims, retail sales and import prices were all USD supportive, though the results were ultimately swept aside by geopolitics. Wall Street sold off sharply, as Treasury yields slipped, again on safe haven purchases.

    [EUR, USD]
    EUR-USD fell to just shy of 1.3845, after taking out 1.3890 stops. The moves came with tensions rising in the Ukraine, right on the EU's doorstep, and comments from the ECB's Draghi, who said the EUR is becoming "increasingly relevant" for the assessment of price stability, in a speech from Vienna. The more dovish remarks have the euro a nudge lower. More EUR-USD sellers are reported at 1.3830 now, with a break under there opening up prospects for a retrace back to Friday's pre-jobs data 1.3740 level.

    [USD, JPY]
    USD-JPY tripped stops under 102.50, which resulted in a minor dip to intra day lows of 102.25. THe pairing was not done however, ast he March 6 low of 102.27 and the March 5 base of 102.12 were breached. Fresh angst over the Ukraine sent USD-JPY to seven-session 101.60 lows from there, as yields and stocks dropped, and risk taking went into the tank.

    [GBP, USD]
    EUR-GBP made a fresh 2014 high at 0.8378 in early London trade, though later touched 0.8331 lows in N.Y. and the euro came under pressure in light of dovish Draghi remarks, and Ukraine concerns. Cable also came off, dipping toward 1.6610 after peaking over 1.6700 into the open.

    [USD, CHF]
    USD-CHF was steady near its two-plus year low of 0.8699 through much of the N.Y. session, with the Swissy's safe-haven credentials intact on the back of Ukraine tensions. EUR-USD's later spike lower aided the dollar versus the CHF however, taking USD-CHF back over 0.8760. EUR-CHF slipped as well, both as the franc outperformed the euro versus the dollar, and on safe haven CHF flows.

    [USD, CAD]
    USD-CAD eased back toward 1.1050 into the North American open, as risk appetite steadied, and as the greenback generally came under pressure. Modest oil price gains were helpful to the CAD, though a band of corporate backed USD-CAD bids slowed losses from there. The pairing put in a floor of 1.1044 at mid-morning, and was largely immune from Ukraine tensions, and sharply lower risk taking levels. From the London close, USD-CAD managed just a 1.1050-70 trading band.

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