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By XE Market Analysis March 13, 2019 2:32 pm
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    XE Market Analysis: Asia - Mar 13, 2019

    The Dollar lost ground in N.Y. on Wednesday, taking the DXY to seven session lows of 96.65, and briefly under its 20-day moving average. Incoming U.S. data was Wall Street friendly, as cooler PPI combined with better durable orders and construction spending to lift stocks. In FX Land, the Pound led the USD lower, as Cable soared over 1.3230 ahead of this evening's no-deal Brexit vote. EUR-USD was lifted to 1.1315 highs from opening lows under 1.1290. USD-JPY fell from 111.46 to 111.20, as USD-CAD eased to 1.3312 from 1.3361 on higher oil prices.

    [EUR, USD]
    EUR-USD was dragged higher with Cable, which was up more than 200 points from Tuesday's low, as the path forward for Brexit looks far less frightening than it did a few days ago. Key will be this afternoon's U.K. parliament's no-deal vote. EUR-USD topped at 1.1315, its best level since pre-ECB last Thursday. The pairing is bumping into its 20-day moving average, which stands at 1.1315. A break above there will bring the March 5 high of 1.1340 into view.

    [USD, JPY]
    USD-JPY rallied to 111.46 highs early in the session, later pulling back to 111.20 lows in afternoon trade. The pairing has for the most part, been hemmed in between its 200-day moving average at 111.41, and its 20-say moving average at 111.11 since Tuesday. Risk on conditions put a floor under the pairing this morning, though have done little to advance it, as the dollar overall remained under pressure since the open.

    [GBP, USD]
    The Sterling market priced in a rejection of no-deal Brexit scenario through the session on Wednesday, seeing Cable rally to 1.3231 highs from London lows of 1.3087. The House of Commons is widely expected to strongly reject a no-deal proposal at this evening's vote on whether to leave the EU without a deal. Even Prime Minister May has U-turned on this, which has been one reason why the pound has rallied by nearly 1% today. This won't mean that the possibility for no-deal will be taken absolutely out of the equation (being a resolution rather than legislation), but it will be a show of both Parliament's intention and power.

    [USD, CHF]
    EUR-CHF settled in the mid 1.13s on Wednesday, after printing a two-week high at 1.1385, buoyed by the rebound in EUR-USD, with the common currency benefiting from progress on the Brexit front. The cross has continued on a relatively choppy path, the latest phase of which have been the current rebound after sharp Euro declines following the ECB's lending move last Thursday. The cross has been seeing relatively high volatility since the start of the year, often times characterized by bouts of pronounced underperformance in the Swiss franc that have often been accompanied by talk/suspicions of SNB intervention.

    [USD, CAD]
    USD-CAD printed seven-session lows of 1.3348 in early North American trade, weighed down by general USD softness seen since the softer U.S. CPI report on Tuesday, and firm oil prices. CAD traders will eye U.S. durables and PPI data at the bottom off the hour, then the EIA oil inventory report at 10:30 EDT for next clues on direction.

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