August 01, 2014

Brief Information about Foreign Exchange Rate Movement

 

 New York Market

  

EUR/USD dipped 0.05% to 1.3390. The euro still depreciated against the greenback. The Eurozone inflation decelerated further to just 0.4% (vs markets’s expectation of 0.5%). Yet, a jump in U.S. initial jobless claims helped the euro trade in a tighter range.

USD/JPY increased gradually 0.01% to 102.80. The yen stabilized somewhat. With no new data from Japan yesterday, the yen traded mainly due to factors from the U.S. The sharp recovery in U.S. economy, especially in Q2, suggested a much better position compared to Japanese economy.

 

 Asian Market

  

Asian currencies mostly fell against the dollar after the U.S. GDP data showed a significant rebound which heightened the dollar’s value. The peso also dropped as traders saw the central bank’s rate hike as less hawkish than expected. Its benchmark rate was increased by 25 bps to 3.75% to tame inflation, while the rate on special deposit account remained unchanged. The won and the ringgit also plummeted as investors, including offshore funds, covered short positions in the dollar.

USD/THB edger up 0.71% to 32.19. The baht continued to weaken after tested its resistance of 32.00 yesterday. The market was relatively sensitive to the better-than-average Q2 annualized GDP of U.S. which helped underpin the dollar’s value, and pushed up USD/THB.

 

  Today Market Direction at 8.30 A.M.

 

KBank Technical Analysis

Morning

Rate

Support

Resistance

Trend (Major)

Today's Strategy

USD/THB (Onshore)

32.15

32.00

32.20

Sideway

Buy USD near support

USD/JPY

102.82

102.60

103.10

Sideway

Buy USD near support

EUR/USD

1.3389

1.3360

1.3420

Sideway

Sell EUR near resistance

EUR/THB

42.99

42.75

43.35

Sideway

Neutral

JPY/THB

0.3127

0.3100

0.3160

Sideway

Neutral

       

 

Foreign Exchange Market News
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