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By XE Market Analysis May 19, 2017 3:57 pm
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    XE Market Analysis: Asia - May 19, 2017

    The dollar was mostly lower in N.Y. trade on Friday, leaving the DXY at six month lows of 97.09. EUR-USD led the charge, as it topped 1.1210. USD-JPY was supported by risk-on conditions, though struggled over the 111.50 mark, which represents the 50-day moving average. Cable rallied to 1.3040 highs, though was unable to take out Thursday's seven-month high of 1.3047. USD-CAD meanwhile, rallied to 1.3598 on cooler Canadian CPI figures, though WTI crud maintained the $50 mark, weighing on the pairing into the close.

    [EUR, USD]
    EUR-USD had been flirting with the 1.1200 level, in morning trade, topping at new six-month highs of 1.1197. Real money offers were reportedly parked from the 1.1200 level, with talk of option backed sellers heard at the figure as well. Buy-stops could be a factor over the level. Comments from ECB's Vasiliauskas earlier, who suggested the ECB should introduce a tightening bias in June and could announce decisions on tapering in autumn, has been supportive of the euro today. The pairing later pushed through the 1.1200 level, filling in offers noted at the figure, and reportedly tripping light buy-stops. Followthrough was limited to 1.1211.

    [USD, JPY]
    USD-JPY has held steady near N.Y. session highs since the Wall Street open, continuing to trade on either side of 111.50, which also represents the 50-day moving average. The level may continue to attract into the close, as traders head to the sidelines into the weekend, despite the risk-on backdrop this afternoon. Geopolitics will remain a factor this weekend and next week, as President Trump head abroad.

    [GBP, USD]
    Cable consolidated rebound gains above 1.30, "closing the gap" left by the October-6 flash crash on a closing basis (needing to finish at above 1.2977). Yesterday's seven-month high at 1.3048 remained unchallenged, and the technically-minded may be worried that volatile price action, along with diverging momentum indicators is portending a corrective phase following a two-month rally from levels near 1.2100.

    [USD, CHF]
    EUR-CHF has recovered over the 1.0900 level after logging a 10-day low at 1.0866. The volatility has stemmed from the impact the Trump intrigues have been having, which has been affecting safe haven currencies. The cross remains well up on the sub-1.07 levels that were prevailing in April before the French presidential elections, however.

    [USD, CAD]
    USD-CAD rallied to 1.3598 highs from better than three-week lows of 1.3554 in the aftermath of the cooler Canada CPI outcome. Stronger retail sales were largely overlooked. The pairing later pulled back to 1.3515 lows, as WTI crude reclaimed and held the key $50 level.

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