July 23, 2014

Brief Information about Foreign Exchange Rate Movement

   

 New York Market

 

EUR/USD fell 0.42% to 1.3466. The euro weakened against the greenback ahead of U.S. inflation numbers for June. U.S. CPI number held steady in June at 2.10%YoY, adding a picture of growing divergence in monetary policy between the U.S. and the European economies.

USD/JPY rose 0.06% to 101.46. The yen retreated since the market participants seemed to be interested in high-yielding assets with an ease in the worries about geopolitical risks. The dollar also gained on the back of benign U.S. inflation in June.

 

 Asian Market

 

 Asian currencies mostly rose against dollar except the rupiah as investors’ risk appetite buoyed amid the relief on the geopolitical risks. Yet, the rupiah retreated after having gained significantly ahead of the announcement to declare the winner of the country’s presidential election. Yesterday, the rupiah lost since his arrival, Prabowo, has withdrawn presidential candidacy and claimed that the election was undemocratic. The withdrawal of Prabowo could suggest a unrest/violence among his supporters. We would recommend investors to stay cautious over Indonesia’s markets over the next few days.

USD/THB USD/THB edged lower 0.42% at 31.76. Despite the news on geopolitical risk and uncertainties over Indonesia’s election result, the baht rose again to an eight-month high since November 2013, driven by inflows from offshore funds. The currency still outperformed  due to continual capital inflows to both stock and bond markets around THB1.7bn and THB23.6b, respectively.

 

Today Market Direction at 8.30 A.M.

   

KBank Technical Analysis

Morning

Rate

Support

Resistance

Trend (Major)

Today's Strategy

USD/THB (Onshore)

31.75

31.65

31.95

Sideway

Sell USD near resistance

USD/JPY

101.48

101.25

101.80

Sideway

Buy USD near support

EUR/USD

1.3466

1.3440

1.3500

Sideway

Sell EUR near resistance

EUR/THB

42.74

42.50

43.06

Sideway

Sell EUR near resistance

JPY/THB

0.3129

0.3105

0.3160

Sideway

Sell JPY near resistance

 

Foreign Exchange Market News
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