July 29, 2015

Brief Information about Foreign Exchange Rate Movement

 

 

New York Market

 

 

EUR/USD edged lower 0.24% at 1.1060. The single currency fell after touching a two-week high of USD1.1129 on Monday. Investors pared bets on a temporary rebound in the euro as they instead favoured expectations that the Fed would take a hawkish bias in the FOMC statement, fanning the hope on the first U.S. interest rate rise coming in September.

USD/JPY rose 0.25% to 123.56. The dollar rebounded against the yen after China’s stock market stabilised yesterday. The yen opened at 123.56 in this morning following the report of Japan’s retail sales that slipped from 1.7% increase on month in May to a fall of 0.8%MoM in June (+0.9%YoY vs +3.0%YoY in May).

 

 

Asian Market

   

Asian currencies mostly gained against the dollar on the dollar’s overnight weakness. The Singapore dollar rose as volatile Chinese stock markets boosted appetite for safer assets. The won outperformed regional peers on month-end corporate demand, reversing its earlier losses. We think Asian currencies would likely struggle to hold up given mounting concerns over China’s stock markets and the prospect of the U.S. rate hike which could take place as soon as September. Weak commodity prices also put pressure on the commodity currencies, including Malaysian ringgit and Indonesia’s rupiah.

 

USD/THB slid 0.08% to 34.84. The baht also edged higher against the dollar yesterday. USD/THB is expected to continue moving in a range trade between 34.80-34.90 ahead of the FOMC statement today. Downward revision of Thai GDP in 2015 by the Fiscal Policy Office yesterday should point to tepid economic recovery and put pressure 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)

34.84

34.75

34.95

Sideway

Buy USD near support

USD/JPY

123.52

123.00

124.00

Sideway

Buy USD near support

EUR/USD

1.1078

1.1000

1.1150

Sideway

Sell EUR near resistance

EUR/THB

38.55

38.25

38.85

Sideway

Neutral

JPY/THB

0.2821

0.2750

0.2850

Sideway

Sell JPY near resistance

 

  

 

 

Foreign Exchange Market News
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