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By XE Market Analysis May 9, 2014 4:26 pm
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    XE Market Analysis: Asia - May 09, 2014

    The dollar was broadly higher in N.Y. trade on Friday, adding to its post-ECB gains versus the euro, and tacking on upside against the other major currencies as well. EUR-USD posted 1.3755 lows, as USD-CAD shot higher on a very soft employment report, as USD-JPY edged to 101.85. Cable stuck below 1.6850, as USD-CHF moved over 0.8850. Aside from wholesale data, the U.S. calendar was bare. Wall Street was marginally under water, while Treasury yields were a bit higher.

    [EUR, USD]
    EUR-USD reportedly ran into Asian reserve manager bids under 1.3780, limiting losses to 1.3775 initially. Reports of reserve buying have made the rounds all week, though following the ECB's verbal intervention, levels are much more attractive now. Later, the pairing cleared out 1.3775 bids, on its way to 1.3755 lows. Stops were a factor under 1.3773, which was the previous low on April 30. Next support is seen at 1.3730. Comments from ECB council member Liikanen upped the expectations for a June policy move (though in what form is unclear), and it seems the euro has more room to fall in the meantime.

    [USD, JPY]
    USD-JPY opened the N.Y. session near 101.65, posting highs of 101.85 in early trade. The pairing failed to seriously test the 102.00 mark over the past three sessions, with a sell-the-rally mentality in effect now that the BoJ appears to be sidelined for now. The outlook only really shifts however, on a break under 101.00.

    [GBP, USD]
    Cable coattailed EUR-USD's price action to a large extent over the last two sessions, partly reflecting a generally firmer dollar, though sterling seems to be holding up a little better than the euro. Cable fell under 1.6840 in early N.Y. trade, before moving sideways on either side of 1.6850 for the duration.

    [USD, CHF]
    EUR-CHF neared the 1.2200 mark in N.Y., perhaps as a fresh round of Russian diplomacy tempered some demand for less risky assets some. The cycle low of 1.2104 and 1.2100 are key support levels. The threat of SNB intervention into its 1.2000 limit peg is helping to deter franc buying to some extent.

    [USD, CAD]
    USD-CAD faded through the session, hitting intra day lows of 1.0815. The pairing got its first push lower after the better U.S. jobless claims this morning, after struggling over 1.0890. Current levels represent the lowest since January 9. Selling interest picked up on the break under 1.0859 (April 9 low), and again under 1.0830. Initial support is seen at 1.0800.

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