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By XE Market Analysis April 6, 2015 7:55 am
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    XE Market Analysis: North America - Apr 06, 2015

    FX trade was light overnight, as most of Europe continued their Easter holidays. EUR-USD is off Friday's post-jobs high, back under 1.1000, as USD-JPY continues to trade either side of 119.00. Wall Street will reopen this morning, and will catch up with Friday's futures, which indicate a sharp opening sell off. The March non-manufacturing ISM at 10:00 EDT is the only U.S. economic releases this morning.

    [EUR, USD]
    EUR-USD rallied over 1.1020 in early Asia, before settling in on either side of 1.0975. With most of Europe closed, trade was uneventful. Fallout from Friday's disappointing jobs report may continue, with the dollar looking to be sold into modest rebounds.

    [USD, JPY]
    USD-JPY found support under 119.00 through the overnight session, though with risk appetite faded, and yields remaining softer, upside is likely to be limited on Monday.

    [GBP, USD]
    Sterling has traded lower on the construction PMI, which came in much weaker than expected at the headline level, dipping to 57.8 from 60.1, although was offset by a rise in optimism to a nine-year peak, while there were also signs that activity may pick up once the May-7 election is out of the way. Cable logged an intraday low at 1.4777 in early N.Y. trade, before following EUR-USD higher. Cable peaked later just over 1.4860.

    [USD, CHF]
    EUR-CHF has established a lower trading range below 1.0500. There have been some analyst notes in circulation highlighting further policy options the SNB has available to try and keep a lid on the franc (including cutting rates deeper into negative territory). The SNB said at its March policy review that the franc is "significantly overvalued and should continue to weaken over time," and that, in a shot across the bows of the market, said it will continue to take account of the franc rate situation in policy decisions and "remain active in the foreign exchange market, as necessary." Both the SNB and SECO cut growth forecasts, factoring in the sharp franc appreciation that was seen in January after the central bank abandoned the 1.20 floor in EUR-CHF. The SNB expects growth of just under 1% this year (down from 2% expected previously) and SECO 0.9% (from 2.1%). Key support in EUR-CHF is at 1.0400-1.0422.

    [USD, CAD]
    USD-CAD stayed under 1.2500 through the overnight session, as crude prices remained over the key $50 mark. Ivey PMI will highlight this morning in Canada.

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