August 31, 2015 

Brief Information about Foreign Exchange Rate Movement

 

 New York Market

 

EUR/USD dropped 0.55% to 1.1185 well off its last Monday’s high of 1.1700 when the sell-offs in the global markets led investors to unwind EUR-funded carry trades. The dollar rose for the 4th straight session to a 1-week high, buoyed by positive US economic data and comments from Fed’s official who did not rule out the possibility of a September rate hike. The dollar index, a gauge of USD value against 6 major currencies, rebounded from a 7- month low struck on Monday and posted its largest weekly gain in a month at 96.09 (+0.5% on day).

 

USD/JPY rose 0.56% to 121.71. The yen eased as volatility in the global markets settled on Friday. USDJPY steadied at 121.23-121.25 on Friday despite the weaker July industrial output which contracted more than expected at 0.6%MoM (vs market f/c of +0.1%). Comments from Fed’s officials, including Vice Chair Stanley Fischer, did not rule out a September rate hike. Though Fischer assures that Fed is also looking at China and the global economy to make policy decision.

 

 

Asian Market 

 

Asian currencies mostly weakened, led by the ringgit. Most emerging Asian currencies slid on Friday and headed for weekly losses despite extended Asian stock market rallies. Northeast Asian currencies bucked regional depreciation trend with TWD and KRW rose to a 2-week high on exporters’ demand for month-end settlements. MYR was up, but for the week it has underperformed regional peers, slipping 0.9% (on week). Concerns about a political crisis involving PM Najib Razak and indebted state fund 1Malaysia Development Berhad still weigh on MYR.

 

USD/THB rose 0.56% to 35.85. The BoT eased regulations to allow Thai residents to invest more freely in offshore securities. Although the measures have not taken effect, it has propped up bearish bets on THB.

 

 

Today Market Direction at 8.30 A.M.

          

KBank Technical Analysis

Morning

Rate

Support

Resistance

Trend (Major)

Today's Strategy

USD/THB (Onshore)

35.86

35.80

36.00

Sideway

Buy USD near support

USD/JPY

121.28

120.90

121.55

Sideway

Buy USD near support

EUR/USD

1.1219

1.1190

1.1250

Sideway

Sell EUR near resistance

EUR/THB

40.18

40.00

40.50

Sideway

Buy EUR near support

JPY/THB

0.2957

0.2925

0.2990

Sideway

Buy JPY near support

 

Foreign Exchange Market News
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