January 20, 2017

Brief Information about Foreign Exchange Rate Movement        

                 

EUR/USD actually rose 0.32% to 1.0664. The euro ended the session with the gain against the dollar as markets remain cautious ahead of Trump’s inauguration ceremony. The dollar index rose against most currencies except for the euro and the pound. Despite ECB’s decision to keep policy unchanged and its dovish undertone from policy meeting last night, the euro managed weakened versus the greenback only briefly. The euro touched the lowest in the session around 1.0590, before edging higher on dollar factor. The ECB signaled that it is likely to maintain the support to the bloc economies suggesting the recent spike in inflation could prove to be temporary since it was mainly due to year-on-year gain in oil price.

 

GBP/USD rose 0.65% to 1.2343. The pound also benefited from dollar retrenchment ahead of inauguration, allowing the pound to gain in line with the euro.

 

USD/JPY increased by 0.19% to 114.86. The dollar gained against the yen on the back of strong economic data supporting the case for higher Fed funds rate this year. Initial jobless claims remained around the lowest in 40 years while housing starts spiked in December, exceeding market’s estimate.

 

Asian currencies strengthened against the dollar. Asian currencies initially made losses on Thursday following Yellen’s comment in the overnight session about the continuation of Fed rate hike in 2017. Yet, markets increasingly became cautious about Trump’s speech at the inauguration ceremony tonight, prompting investors to remain on the sideline instead of taking view that dollar will be bullish.

 

USD/CNY rose 0.11% to 6.882. The yuan still weakened against the dollar. Markets will be eyeing for the release of GDP data today.

 

USD/THB declined 0.10% to 35.40. Thai baht moved in a narrow range of 35.34-35.46. In term of foreign flows, Thursday was the first day this week that foreign investors reduced its position in Thai bonds by around THB4.7bn, mainly in short-term bills as they reduced FX speculative position ahead of the inauguration.

 

 

 

Today Market Direction at 8.30 A.M.   

 

KBank Technical Analysis

Morning

Rate

Support

Resistance

Trend (Major)

Today's Strategy

USD/THB (Onshore)

35.36

35.20

35.50

Sideway

Sell USD near resistance

USD/JPY

114.81

114.40

115.20

Sideway

Sell USD near resistance

EUR/USD

1.0667

1.0640

1.0700

Sideway

Buy EUR near support

EUR/THB

37.71

37.50

38.00

Sideway

Neutral

JPY/THB

0.3080

0.3050

0.3120

Sideway

Buy JPY near support

Foreign Exchange Market News
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