Home > XE Currency Blog > XE Market Analysis: Asia - Mar 14, 2019

AD

XE Currency Blog

Topics6300 Posts6345
By XE Market Analysis March 14, 2019 3:33 pm
    XE Market Analysis's picture
    XE Market Analysis Posts: 4309
    XE Market Analysis: Asia - Mar 14, 2019

    The Dollar was rangebound through the N.Y. session on Thursday, leaving the DXY inside a 96.82 to 96.69 trading bans. Cable chopped around between 1.3289 and 1.3223, with the lows coming after the U.K. parliament voted to delay Brexit. EUR-USD bottomed at 1.1295, managing a high of just 1.1310 into the London close. USD-JPY rose to 111.83 , with Yen selling noted ahead of today's BoJ meeting. USD-CAD peaked at 1.3347 early, later pulling back to 1.3313 on firmer oil prices.

    [EUR, USD]
    EUR-USD traded sideways through the N.Y. session, managing just a 1.1295 to 1.1310 trading band since the open. The pairing was likely on hold ahead of the upcoming Brexit vote in London, as was the case of Cable. A relatively better outlook for the U.S. economy versus the EU should keep the Euro in sell-the-rally mode. Traders may use a rally toward the 50-day moving average to sell into, which currently stands at 1.1365.

    [USD, JPY]
    USD-JPY was stuck inside a narrow 111.67 to 111.52 trading band through much of the morning session, in line with most other Dollar pairings. The risk backdrop remained relatively neutral and not a factor in providing USD-JPY directional cues. The pairing is above its 200-day moving average of 111.43, and has a shot at closing above the level for the first time this week, which will be taking as a bullish development. Later, USD-JPY perked up to session highs of 111.83. There was talk that the BoJ announcement (this evening) could involve the cutting of economic forecasts, as some market observers think Japan may already be at recession levels. This outcome would likely weigh on the Yen and the Nikkei.

    [GBP, USD]
    Cable was trading near 1.3280 going into the no-deal Brexit vote, coming from earlier lows of 1.3200. The pound is up nearly 2% against the dollar on the week so far, and is up by 4.1% on the year-to-date. The rise reflects a partial unwinding in the Brexit discount that the pound has been trading with since the vote to leave the EU in June 2016, with political developments having lowered the risk for there being a disorderly no-deal departure of the UK from the EU. The motion to seek a delay in the Brexit date was accepted by lawmakers by 412 to 202, with opposition's Corbyn suggesting that this heads off PM May's "deal or no-deal" scenario. Cable backed up above 1.3280 briefly on the headlines, followed by a retreat back to 1.3223 (at time of this writing), as the situation remains clear as mud.

    [USD, CHF]
    EUR-CHF has consolidated near the two-week high seen earlier in the week at 1.1385, buoyed by the rebound in EUR-USD. 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.

    [USD, CAD]
    USD-CAD traded near 1.3340 in early North America, coming from overnight lows of 1.3287. WTI crude is back at four-month highs over $58.50, following a brief dip to $58.00 ahead of the open, which should put a cap on USD-CAD for now. The pairing later fell back under 1.3313, as oil prices traded to trend highs of $58.74.

    Paste link in email or IM