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By XE Market Analysis September 30, 2013 1:45 pm
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    XE Market Analysis: Asia - Sep 30, 2013

    The dollar and yen were mostly softer in N.Y. trade on Monday, after posting modest gains in overnight trade. EUR-USD moved over 1.3555, after finding support just under 1.3500 at the open. USD-JPY meanwhile, sagged to trend lows near 95.60, though found Japanese support at the level, and later bounded over 98.35. EUR-JPY buying was prevalent through the session, reportedly on quarter-end interest. On the calendar, the Chicago ISM and the Dallas Fed index both improved, but had little lasting impact on the FX market. Stocks and Treasury yields were lower, as angst over the potential midnight U.S. government shutdown loomed.

    [EUR, USD]
    The dollar slipped broadly lower after the N.Y. open, taking EUR-USD to 1.3555 highs. Buyers stepped in on the move over 1.3511, the London morning high, and again over 1.3520, which represented the Friday close. Quarter end flows were noted, though about ran their course into the London close. Resistance is now seen at 1.3565, Friday's high, and 1.3568, the September 19 peak.

    [USD, JPY]
    USD-JPY and EUR-USD were supported a sizable EUR-JPY buy order early in the session, which took the cross over 132.40, from N.Y. lows around 131.65. USD-JPY found Japanese bids in place into 95.50, and the dollar pairing later made its way over 98.35. EUR-JPY bidding interest continued as well, with the cross running up over 1.3310 before settling back some.

    [GBP, USD]
    Cable made a run over 1.6195, levels last seen way back on January 13, as improving U.K. fundamentals, and a less hawkish BoE have benefited the pound recently. Barrier options are reportedly in place at 1.6200, and have so far been repelled. This said, pullback has been limited to 1.6180. Stops are now seen over 1.6200.

    [USD, CHF]
    EUR-CHF has continued to trend lower, today driven by the political uncertainty in the U.S. and Italy which is feeding a Swiss currency supportive risk-off theme in global markets. The cross has descended from 1.2400-plus levels two weeks ago and has traded to a low of 1.2217 today, so still above the SNB no-go zone near 1.2000. The cross found good support in N.Y. however, and rallied to highs over 1.2245, largely as EUR-USD asserted itself on the upside.

    [USD, CAD]
    USD-CAD again found buyers around 1.0300, basing at 1.0297 in London, before inching back toward 1.0315. The pairing managed a meager 20 point gap up over 1.0320 at the Asian open, though range trade has been persistent. Canada GDP rebounded 0.6% in July, better than expected (median +0.5%) following the 0.5% drop in June, which took USD-CAD to 1.0275 lows. Inside of 1.0270 and 1.0340, two-way flows should continue, and the pairing headed back toward 1.0300 in light afternoon trade.

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