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By XE Market Analysis February 10, 2014 3:22 pm
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    XE Market Analysis: Asia - Feb 10, 2014

    The FX market was very quiet in N.Y. on Monday, as a lack of data, and flat equity and Treasury prices kept activity muted. EUR-USD matched London highs of 1.3650, and put in a floor of 1.3630. USD-JPY meanwhile, dipped briefly to 102.00, though continued to find support at the figure. Dealers will look ahead to Fed chair Yellen's testimony to the House financial services committee on Tuesday, where the markets will get clues on her policy leanings.

    [EUR, USD]
    EUR-USD inched to N.Y. session highs of 1.3650 into the London close, on par with the overnight peak. Option backed offers were reported from the 50 level, while bids were seen from 1.3620. Traded volumes were said to have been on the light side this morning, as markets overall are fairly benign. The bigger picture technical picture has shifted to more neutral than bearish following the recovery above the 20- and 50-day moving averages.

    [USD, JPY]
    USD-JPY settled in near 102.10 through the morning session, after dipping from 102.50 in London. The pairing slipped to 102.00 in concert with a slight downturn in Treasury yields, though again found solid support at the figure.

    [GBP, USD]
    Cable settled on either side of 1.6400, largely following EUR-USD is terms of direction as both pairs consolidate gains seen in the wake of the disappointing U.S. jobs report. Cable's technical picture still remains tentatively bearish following the double rejection from forays above 1.6600 in late January and the subsequent breach (and continued hold below) of both the 20- and 50-day moving averages.

    [USD, CHF]
    EUR-CHF edged out a 10-day high of 1.2250 as the Swiss currency unwinds some of its safe haven premium. The cross had been flirting with 1.2200 amid the backdrop of risk aversion in global markets, though the steadying in stock markets has lent the cross some support. The Dec-17 cycle low of 1.2167 has now fallen out of scope. SNB-speak last week affirmed that a removal of the 1.20 limit would only be considered if inflation was much higher had little impact.

    [USD, CAD]
    USD-CAD was steady near intra day highs just over 1.1050. The pairing had found a base just under 1.1020 in London, where a layer of bids was reported. On the other side of the market, sellers were seen in place from 1.1060. Risk levels were relatively neutral through the session, and with no data on tap, USD-CAD remained rangebound into the close.

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