Home > XE Currency Blog > XE Market Analysis: Asia - Nov 01, 2018


XE Currency Blog

Topics6281 Posts6326
By XE Market Analysis November 1, 2018 3:15 pm
    XE Market Analysis's picture
    XE Market Analysis Posts: 4294
    XE Market Analysis: Asia - Nov 01, 2018

    The Dollar pulled back from Wednesday's trend high, leaving the DXY at lows of 96.20, down from 97.20 highs seen yesterday. Incoming data was mostly in-line with expectations, though the manufacturing ISM was light of forecasts. Wall Street rallied as Trump said progress was being made in U.S./China trade matters. EUR-USD climbed to 1.1424 highs, while USD-JPY was heavy, bottoming at 112.61. USD-CAD moved up from 1.3069 lows as oil prices were crushed. Cable meanwhile, rallied sharply to 1.3014.

    [EUR, USD]
    EUR-USD has rallied to a six-session high of 1.1424, as the Dollar overall has remained under pressure through the session. The October 25 high of 1.1434, then the 20-day moving average at 1.1468 are the next resistance levels. Big picture, signs of EU economic slowing, along with a dovish ECB, contrasted against a strong U.S. economy, and a tightening Fed, should keep the Euro in sell-the-rally mode.

    [USD, JPY]
    USD-JPY has stayed down through the session, trading to 112.61 lows after running into sellers from the 113.00 level before the open. The pairing has been under pressure since yesterday, despite the improved risk backdrop, after it made three-week highs of 113.38. Japanese selling into month end was reportedly a factor on Wednesday, while profit taking from last week's rally from under 111.40 has been cited as well.

    [GBP, USD]
    Sterling saw little lasting impact from BoE's guidance and updated forecasts, despite a hawkish front step, with Brexit uncertainty, and risk of a disorderly no-deal exit from the EU, the Bank said the outlook will "depend significantly on the nature of EU withdrawal." Cable headed higher on the coattails of a generally softer dollar. Cable posted a better than one-week high at 1.3014 in what is now the pair's first daily back-to-back gain in two weeks.

    [USD, CHF]
    EUR-CHF has recouped back above 1.1400, recovering rom the four-week printed at 1.1355 last Wednesday, which extended a descent from levels above 1.1500. Signs of flagging Eurozone growth and concerns about the Eurosceptic populist movement have seen the common currency fall out of favour. EUR-CHF has support at 1.1355-62, which encompasses the recent low and the prevailing situation of the 50-day moving average.

    [USD, CAD]
    USD-CAD touched one-week lows of 1.3069, down from near 1.3115 into the North American open. The pairing has been weighed down by the general USD pullback from trend highs this morning, and by a modest uptick in WTI crude oil prices. Later, as oil prices plunged, the pairing made its way back to 1.3107 highs. Support comes at last Friday's low of 1.3066.

    Paste link in email or IM