Finance Capital .info

XE Market Analysis: Europe – May 08, 2017

The euro saw only a brief rally in the opening phases of trading in Asia Pacific following the well-anticipated victory of Macron in the runoff presidential election in France on Sunday. EUR-USD logged a peak of 1.1023, the first time the pairing has traded above the 1.10 level since last November. The pair has subsequently settled in range below 1.1000. EUR-JPY logged a peak at 124.51, which is the highest level the cross has seen since May last year., before steadying at lower levels. USD-JPY briefly rallied at then open, leaving a peak at 112.98, seven pips shy of last week’s two-month high, before ebbing back. Risk appetite was high in the Asian market, though the Shanghai Composite hit a seven-month low as a consequence of Beijing’s attempts to cool China’s property market. Cable logged a seven-and-a-half-month high at 1.2990 in early trading before ebbing back somewhat.”

[EUR, USD]
The euro saw only a brief rally in the opening phases of trading in Asia Pacific following the well-anticipated victory of Macron in the runoff presidential election in France on Sunday. EUR-USD logged a peak of 1.1023, the first time the pairing has traded above the 1.10 level since last November. The pair has subsequently settled in range below 1.1000. EUR-JPY logged a peak at 124.51, which is the highest level the cross has seen since May last year., before steadying at lower levels. We expect EUR-USD to remain broadly underpinned, although at the same time anticipate limited upside potential as the Fed heads for what we expect will be another 26bp rate hike in June. Key EUR-USD support is at 1.0851-7.

[USD, JPY]
USD-JPY briefly rallied at then open, leaving a peak at 112.98, seven pips shy of last week’s two-month high, before ebbing back. Risk appetite was high in the Asian market, though the Shanghai Composite hit a seven-month low as a consequence of Beijing’s attempts to cool China’s property market. EUR-JPY logged a peak at 124.51, which is the highest level the cross has seen since May last year., before steadying at lower levels. More of the same looks likely, with the yen losing ground versus its major counterparts.

[GBP, USD]
Cable logged a seven-and-a-half-month high at 1.2990 in early trading before ebbing back somewhat. The pound has continued to hold up well generally. Local election results out of the UK late last week showed that the Conservative Party beating Labour Party candidates in the latter’s heartlands, portending that the Conservatives are set to win big at the June-8 general election, which is going down well in markets as it implies there will be a strong market-friendly government with a strong Brexit mandate. Cable closed out in London last Friday above the previous week’s closing level at 1.2948, making it the highest close since last September. Support is at 1.2900-09.

[USD, CHF]
EUR-CHF has seen some relatively whippy price action over the last week, though the overall bias has been upward. The cross logged a four-month high today at 1.0887. We expect the cross to hold up. Support is at 1.0792-1.0800, and resistance is at 1.0887-90.

[USD, CAD]
USD-CAD managed a correction of a strong bullish phase, which left a 15-month high at 1.3793. A stabilization in oil prices helped the Canadian dollar rebound some, which pushed to pair back to the mid 1.36s..USD-CAD breached trend support at 1.3714-15, which now reverts as resistance.

FinanceCapital.info

Add comment