June 30, 2016

Brief Information about Foreign Exchange Rate Movement

  

EUR/USD rebounded 0.53% to 1.1124. The euro traded at 1.1125 after reaching 1.0912 on Friday, its lowest since March. The dollar index, which tracks the value of USD vs a basket of six major currencies, dropped 0.1% to 95.64, resulting in a monthly loss of 0.2%.

 

GBP/USD rebounded 0.62% to 1.3427. European and US traders were active again as the FTSE100 surged 3.6%, taking the UK index above its level at pre-Brexit close.

 

USD/JPY rose by 0.07% to 102.83, rebounding from a 99.00 low on Friday, a trough seen in November 2013, as risk off mood eased. Data released yesterday showed that Japan's industrial output fell in May at the fastest rate in three months, highlighting concerns about weak exports. However, short-covering flows on a quarter and half-year day today may limit the yen’s downside.

 

Asian currencies strengthened across the board. Risk appetite looks likely to remain strong for the 2nd day on rising oil prices and hopes for extra monetary stimulus. The won led regional currencies higher as offshore funds continued to buy the currency, while the ringgit was supported by higher commodity prices. Most Asian government bond prices rose as central banks are expected to cut interest rates further to cope with the fallout from Britain's decision to leave the EU last week.

 

USD/CNY dropped 0.25% to 6.635. The yuan was little changed, hovering near its 5-year low vs USD with the PBOC keeping on the sideline. Prior to market opening, the PBOC set the midpoint rate at 6.6324, 0.31% firmer than the previous fix of 6.6528, ending a three-day weaker setting.

 

USD/THB dropped 0.33% to 35.12. The baht is likely to continue benefiting from inflows to Thai markets as capitals leave the UK and the EU. The BoT’s new economic forecast will be released today. While the GDP could be kept unchanged, we expect stronger growth in domestic demand.

 

Today Market Direction at 8.30 A.M.

                                                       

KBank Technical Analysis

Morning

Rate

Support

Resistance

Trend (Major)

Today's Strategy

USD/THB (Onshore)

35.14

35.00

35.30

Sideway Down

Sell USD near resistance

USD/JPY

102.70

101.50

103.20

Sideway Down

Sell USD near resistance

EUR/USD

1.1104

1.1070

1.1140

Sideway Up

Buy EUR near support

EUR/THB

39.00

38.83

39.50

Sideway

Neutral

JPY/THB

0.3422

0.3400

0.3448

Sideway Up

Buy JPY near support

                           

Foreign Exchange Market News
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