Home > XE Currency Blog > XE Market Analysis: Asia - May 14, 2014


XE Currency Blog

Topics7443 Posts7488
By XE Market Analysis May 14, 2014 2:32 pm
    XE Market Analysis's picture
    XE Market Analysis Posts: 5367
    XE Market Analysis: Asia - May 14, 2014

    The dollar traded sideways through the N.Y. session, with most major dollar pairings mired inside a 25 point trading band. Hotter U.S. PPI gave the greenback a minor boost, though softer yields and equities offset to a degree. EUR-USD held onto the 1.37 handle throughout the session, basing at 1.3705, and peaking at 1.3723. USD-JPY found support into 101.70, though couldn't muster gains of more that 101.94. USD-CAD gave back the 1.09 handle, while cable stayed under 1.6800.

    [EUR, USD]
    EUR-USD bids were noted from 1.3700 to 1.3685, with sell-stops likely to be a factor under 1.3680. A softer risk backdrop gave euro bulls the upper hand, though this said, offers are reportedly thick from 1.3730. The euro appears to remain in a consolidation period for now, though with ECB-speak continuing to come out in favor of a June easing, we see room for further downside in the coming days.

    [USD, JPY]
    USD-JPY has continued to see subdued price action, hovering in the high 101s through the N.Y. session. The 101.70 level held up, with talk of Japanese importer hedging interest heard. On the other side of the market, exporter offers are inplace from 102.20, though the N.Y. market did not have enough interest to even test 102.00.

    [GBP, USD]
    GBP took a dive following a disappointing labour market report and BoE May Inflation Report, which unexpectedly left GDP and CPI projections largely unchanged. Cable dove over 100 pips in making 1.6758 in London, and later touched 1.3754 lows in N.Y.

    [USD, CHF]
    EUR-CHF has re-established a sideways direction anchored around 1.2200, having recovered from a recent foray to the mid-121s. 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 was dead in the water through late morning, trading a 1.0893 to 1.0907. Offers were in place from 1.0910 while serious bids reportedly don't come in until 1.0850. The pairing later eased lower, with sell-stops said to be building near 1.0870, just under Monday's 1.0875 lows. The pairing crept to intra day lows of 1.0876.

    Paste link in email or IM