December 17, 2014

Brief Information about Foreign Exchange Rate Movement

 

 New York Market

 

EUR/USD rose 0.59% to 1.2511. The dollar slipped against major currencies on expectations that the Fed would turn more dovish in its 16-17 December’s meeting, prompting traders to take profits on long dollar positions.

USD/JPY dropped 1.20% to 116.41. A slide in oil prices to a fresh 5-year-low pushed the Russian rouble to new lows and boosted the safe-haven yen against the dollar. The rouble plunged more than 11% against the dollar in its steepest intraday fall since 1998, despite the central bank hiking interest rate by 6.5%, before recovering some losses as oil price rebounded. Commodity currencies are under pressure. This could prompt two adverse scenarios: investors turn risk-off and sell off emerging currencies or investors sell energy-related shares and high-yield bonds, prompting liquidity problems. Oil price has tumbled more than 50% since June during which Brent was traded above 115 USD/barrel (vs current Brent futures dropping below 60 USD/barrel)

 Asian Market

     

Asian currencies mostly strengthened against the dollar. The rupiah gained after hitting a 16-year low on Tuesday, buoyed by central bank intervention and short-covering. The rupiah fell to as low as 12,930 vs the dollar earlier on Tuesday, its lowest level since 1998. The won touched a 5-week high, getting a lift as the yen gained ground. The rupee touched a 13-month-low, but regained some ground due to dollar-selling by Indian exporters.

USD/THB rose slightly by 0.02% to 32.98. The baht was capped between 32.95-33.05 with equity-related flows supported USD. Foreign investors already sold off THB12bn of Thai stocks over the last two days. Focus will be on the MPC meeting today.

 

Today Market Direction at 8.30 A.M.

                           

                        

KBank Technical Analysis

Morning

Rate

Support

Resistance

Trend (Major)

Today's Strategy

USD/THB (Onshore)

33.01

32.90

33.10

Sideway

Buy USD near support

USD/JPY

116.86

116.55

117.15

Sideway

Sell USD near resistance

EUR/USD

1.2510

1.2475

1.2545

Sideway

Buy EUR near support

EUR/THB

41.26

41.05

41.60

Sideway

Buy EUR near support

JPY/THB

0.2825

0.2803

0.2855

Sideway

Buy JPY near support

             

Foreign Exchange Market News
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