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By XE Market Analysis November 14, 2019 2:46 pm
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    XE Market Analysis: Asia - Nov 14, 2019

    The Dollar took a bit of a hit in N.Y. trade on Thursday, despite a warmer U.S. PPI outcome. Firmer jobless claims, along with generally risk-off conditions, which saw Treasury yields fall back, weighed on the Greenback to an extent. The DXY slipped back to 98.16, from pre-open levels of 98.42. EUR-USD posted trend lows of 1.0989 ahead of the open, later peaking at 1.1027. USD-JPY was pressured lower, hitting 108.26. USD-CAD fell to 1.3244, down from early highs of 1.3271. Cable recovered some, but remained inside of its week range, topping at 1.2888. Friday's docket brings retail sales, the Empire State index, trade prices, and industrial production.

    [EUR, USD]
    EUR-USD has headed marginally higher into the London close, later topping at 1.1027, but not before making new one-month lows of 1.0989 into the N.Y. open. The Euro appeared to get a modest boost from ECB's Villeroy, who sees interest rates near bottom. The French central banker said "the markets anticipate, reasonably, in my view that short-term rates are close to bottoming out". Still, with six-straight sessions of lower daily lows under its belt, EUR-USD continues to look technically weak. In addition, Dollar favorable interest rate spreads, and an outperforming U.S. economy should continue to see the pairing sold into strength.

    [USD, JPY]
    USD-JPY hit eight-session lows of 108.57 in early trade, with losses coming on the back of generally risk-off conditions. Soft China data, lower equities and Treasury yields and ongoing trade uncertainty have kept sellers in charge. The pairing later fell to 108.26, as Wall Street losses increased. The next support level comes at the 50-day moving average at 108.17, with the 200-day moving average, currently at 109.00 marking resistance.

    [GBP, USD]
    Cable posted 1.2888 highs into the London close, though remained inside of the week's trading band. This is the third consecutive day of such price action. In contrast, the UK currency earlier scaled to five-month highs versus the euro, reflecting broader declines in the common currency. Sub-forecast retail sales data out of the UK was the latest data point to show the UK economy in sluggish form, though the same can be said for the eurozone and other global economies. Focus remains on political campaigning in the UK into the December-12 general election. Politico's poll tracker shows the Conservatives command 39% support, up 3 points over the last two weeks and up from 28% at the time Johnson took over from Teresa May in late July.

    [USD, CHF]
    EUR-CHF has seen some choppy trading in recent sessions, but with an overall downside bias, despite the abatement in no-deal Brexit risk and the recent blast of risk-on positioning in global markets. A generally weak Euro saw the cross hit one-month lows of 1.0863 in Europe, later rallying back to 1.0894 highs.

    [USD, CAD]
    USD-CAD was higher for the third day running, topping at new one-month highs of 1.3271, and within reach of the 200-day moving average at 1.3276. The level may initially prompt some profit taking, though recently softer Canada data has opened the door to a BoC rate cut as soon as December, with that prospect likely to put a floor under USD-CAD for now.

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