Home > XE Currency Blog > XE Market Analysis: Asia - May 02, 2014


XE Currency Blog

Topics7781 Posts7826
By XE Market Analysis May 2, 2014 2:49 pm
    XE Market Analysis's picture
    XE Market Analysis Posts: 5705
    XE Market Analysis: Asia - May 02, 2014

    The dollar rallied broadly after the much better April NFP print. Treasury yields moved higher, as U.S. equities found a modest bid as well. The greenback bumped along near its highs through mid morning, though from there, gave back all its gains, and then some. Wall Street turned negative, as yields plunged lower, on safe-haven Treasury buying, as the market weighed escalation in the Ukraine crisis and the Obama/Merkel press conference, including momentum toward Russian economic sector sanctions. EUR-USD fell to 1.3813 lows after the jobs report, later peaking over 1.3870. USD-JPY ramped up over 103.00, only to fall back to 102.14 lows.

    [EUR, USD]
    EUR-USD was reportedly supported at 1.3815 by reserve managers, keeping the 1.3800 level out of reach. The dollar later back its post-jobs report gains, and then some, as Wall Street stayed under water, but more importantly, as Treasury yields continued to move lower. The 10-year note was as much as 12 bps lower than it's post-employment highs, trading at 2.58%, and appeared to have weighed on the dollar significantly. EUR-USD quickly made it to highs over 1.3870, from 1.3813 lows.

    [USD, JPY]
    USD-JPY shot up to 103.01 highs from 102.50 after the U.S. employment report, where it ran into a wall of reported Japanese offers. The pairing idled over 102.80 for an hour or so, before risk appetite faltered, and the dollar took a nose-dive. As Wall Street and Treasury yields fell, USD-JPY pulled back to intra day lows of 102.13 before stabilizing. The pairing remains mired in the sticky 102-103 range, though next week could offer a breakout, depending on geopolitical events.

    [GBP, USD]
    Cable settled lower, under 1.6900 after clocking a new-major trend peak of 1.6923 in the wake of the stellar manufacturing PMI data out of the U.K. on Thursday. The pairing touched 1.6823 lows after the U.S. jobs report, though recovered over 1.6875, as risk appetite dissolved.

    [USD, CHF]
    EUR-CHF traded to 1.2175 lows on ramped up Ukraine fears. USD-CHF moved higher after the U.S. jobs report, though headed under 0.8775 on eroded risk taking levels. The CHF will remain tied to general risk levels, though with the SNB on guard for EUR-CHF, downside will be limited.

    [USD, CAD]
    USD-CAD printed 1.1007 highs after the U.S. jobs data, though quickly headed back to near 1.0980. A fairly heavy band of sellers was in place at 1.1000-10, which were only partially filled in before the buyers dried up. The pairing eased back under 1.0940 in subsequent trade, as risk appetite failed on the back of Ukraine unrest, and sharpy lower U.S. yields, though picked back up toward 1.10980 into the close.

    Paste link in email or IM