2013-04-11 20:51 (UTC)
XE Market Analysis
The dollar was mixed in N.Y. trade on Thursday, losing ground to the euro, while perking up some against the yen. Aside from a brief dip under the figure, EUR-USD held the 1.3100 mark through most of the day, though ran into resistance into the 1.3125 region. USD-JPY meanwhile, again stopped short of the key 100.00 mark, posting 99.93 highs. On the economic data front, import prices were a bit softer than expected, while weekly jobless claims dipped more that forecasts, but were impacted by seasonal considerations. Friday's U.S. calendar picks up with retail sales and PPI to round out the week.[EUR, USD]
EUR-USD was being supported by European account bids, which fueled a move up to intra-day highs just shy of 1.3140. A real money account was a good buyer, while a corporate name had a decent interest via EUR-GBP, but has since turned lower as Cable broke 1.5400 for the first time since February-20. EUR-USD is an important juncture as there are several resistance levels between 1.3145 and 1.3160. There include the 55-day and 100-day moving average at 1.3145 and 1.3148, respectively, along with outstanding 1.3150 barriers and highs from February-27 at 1.3161.[USD, JPY]
USD-JPY succumbed to profit taking to trade into the 99.10 region. A European account was heavily tipped, while two large U.S. money center names indicated heavy flows to buy JPY since the European morning. Stale longs looked exposed during the European morning after buying aggressively from the 99.50 region to 99.75, but were unable to clear very deep exporter offers. Through the N.Y. session though, sellers appeared to step back to a degree, allowing USD-JPY to touch 99.93 highs.[GBP, USD]
Cable ran into offers after it cleared the 1.5400 level ahead of the U.S. data. A U.K. clearer was a decent buyer and triggered buy stops above 1.5405. Long profit taking is keeping a check on further gains and there is strong resistance from 1.5425 to 1.5450 also adding weight. However, buyers are in charge at the moment on bullish indicators on the hourly and daily chart. Natural demand should emerge into 1.5375-80 and into 1.5350 over the N.Y. morning, while larger support ahead of 1.5300 has held since yesterday's N.Y. morning.[USD, CHF]
USD-CHF broke back below 0.9300 as dollar selling accelerated ahead of the N.Y. open. It headed into support from late February at 0.9270-80 after yesterday's lows at 0.9295 gave way. A break of February-28 lows of 0.9280 could see order book bids at 0.9250 threatened and previous lows around 0.9230-35. Although this will be dependent on EUR-USD's ability to sustain higher levels as it nears strong resistance into the 1.3150 region.[USD, CAD]
USD-CAD dropped out of its recent trading range, moving under 1.0090 in fairly subdued trade. Standing bids and offers had been lowered a couple of times over the past few days, indicating the big picture trend is to the downside. Buyers wre reported at 1.0080, which signaled an interim bottom. On the daily chart there are support levels between 1.0080 and 1.0050 that should attract buyers.