October 30, 2014

Brief Information about Foreign Exchange Rate Movement

 

 New York Market

 

EUR/USD dropped 0.81% to 1.2632 as the dollar rose across the board. The dollar index, which measures the value of the dollar against 6 major currencies, spiked by 0.64% to 86.04. Investors pulled the euro down to a 1-week low as the FOMC sounded more hawkish/optimistic over U.S. economic developments, dismissing fragility in the global economy and downside risk to inflation.

USD/JPY rose 0.67% to a 3-week high against the yen at 108.89 after topping at 109.00. USD/JPY bulls are back after the more hawkish FOMC, with a run above 109.00 potentially on tap, although we see BOJ retaining its confident stance in tomorrow’s meeting. Yet, inflation forecasts could be trimmed to account for declining global oil price, implying easing is likely.

 

 Asian Market

     

Asian currencies weakened as Asian stocks dipped as the FOMC dropped the characterization of the U.S. labour market slack as ‘significant’. USD/SGD traded in a tight range 1.2721-31. Despite the less-than-stellar GDP, there are encouraging signs that ongoing restructuring efforts are bearing fruit particularly in the manufacturing sector as shown in the Monetary Authority of Singapore’s biannual Macroeconomic Review. Asian FX bulls are likely taking a backseat until the FOMC jittery is over.

USD/THB drifted rose 0.31% to 32.54, helped by USD/Asians rebound. The baht sales were also triggered by importers’ month-end demand and trade deficit of USD1.8bn in Sep customs trade data. Finance Minister, Mr. Phasee, said authorities are mulling plans of additional stimulus. Hawkish FOMC sees USD/THB testing strong 32.55 barrier.

 

 

Today Market Direction at 8.30 A.M.

                                 

KBank Technical Analysis

Morning

Rate

Support

Resistance

Trend (Major)

Today's Strategy

USD/THB (Onshore)

32.56

32.50

32.70

Sideway

Buy USD near support

USD/JPY

109

108.70

110.00

Sideway

Buy USD near support

EUR/USD

1.2619

GBP

1.2700

Sideway

Sell EUR near resistance

EUR/THB

0.00

40.75

41.45

Sideway

Neutral

JPY/THB

0.2987

0.2965

0.3011

Sideway

Sell JPY near resistance

                     

Foreign Exchange Market News
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