January 30, 2015

Brief Information about Foreign Exchange Rate Movement

 

 New York Market

   

EUR/USD ended higher 0.29% at 1.1320. The euro was up against the dollar, even though Germany’s inflation turned into negative territory in January for the first time in more than five years. The price fell 0.5% from a year earlier (vs +0.1% in December). The fall in prices was largely driven by energy. Markets still concerned over Greece’s new anti-bailout government after France insisted that Greece’s debt would not be cancelled but could be allowed more time for new government to repay it. Meanwhile, Denmark’s central bank cut its deposit rate for 3rd time from -0.35% to -0.50% in an effort to defend the nation’s currency peg (with the euro) following the ECB’s QE. The Danish kroner traded at 7.444 against the euro, compared with 7.4475 at the beginning of the year.

 

USD/JPY climbed 0.64% to 118.29. The yen lost against the dollar after the print on Japan’s retail sales came in weaker than expected, slowing from 0.5%YoY in November to 0.2%YoY in December. The U.S. weekly jobless claims which posted the largest drop of 43K to 265K last week helped underpin the strength of the dollar.

 

 

 

 Asian Market

 

Asian currencies mostly lost against the dollar as the Fed’s upbeat tone on the U.S. economy suggests the Fed is on track to raise rate this year. The ringgit slide to a near six-year low as the tumbling oil prices raised concerns over Malaysia’s current account and an increase in its fiscal deficit. The Singapore dollar rebounded on caution over potential intervention by the central bank to support it. Anyhow, the outlook stayed pessimistic after an expected monetary policy easing on Wednesday.

 

USD/THB closed higher 0.65% at 32.78. The baht dropped with a resurgence of bullish dollar following the Fed looking set to remain on track to begin normalization. 

 

Today Market Direction at 8.30 A.M.

                        

KBank Technical Analysis

Morning

Rate

Support

Resistance

Trend (Major)

Today's Strategy

USD/THB (Onshore)

32.75

32.70

32.90

Sideway

Buy USD near support

USD/JPY

118.18

117.50

119.00

Sideway

Buy USD near support

EUR/USD

1.1330

1.1300

1.1400

Sideway

Sell EUR near resistance

EUR/THB

37.06

36.70

37.50

Sideway

Buy EUR near support

JPY/THB

0.2771

0.2700

0.2850

Sideway

Buy JPY near support

                      

Foreign Exchange Market News
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