January 19, 2017

Brief Information about Foreign Exchange Rate Movement        

                 

EUR/USD retreated by 0.77% to 1.063. The euro weakened as the dollar reversed its previous day’s loss after Yellen’s comment. The release of U.S. inflation for December showed that headline price rose above 2.0% for the first time in 2 ½ years and provided support for higher Fed funds rate. In December, headline CPI stood at 2.1% while core inflation registered at 2.2%.

 

USD/JPY rebounded quickly by 1.79% to 114.64. The yen weakened against the dollar quite sharply on Wednesday as Janet Yellen signaled that the U.S. is on course for higher rate. Robert Kaplan (Dallas Fed) who is a voting member of FOMC in 2017 also reiterated that he sees around 3 hikes as projected in FOMC’s DOT PLOT from December’s meeting.

 

GBP/USD suffered 1.23% to 1.2263.  After the previous day’s gain of more than 3%, the pound retreated quite quickly mainly because of strengthening dollar.

 

Asian currencies mostly weakened against the dollar in the overnight session. The currencies which suffered higher degree of losses are those that were the outperformers in the previous days, including KRW (-1.56%), TWD (-1.20%) and SGD (-1.00%).

 

USD/CNY rose 0.46% to 6.875. The yuan moved in line with other Asian currencies. Markets await for more clues on Chinese economy tomorrow from the release of China’s 2016 GDP.

 

USD/THB ended on Wednesday’s session higher by 0.42% to 35.43. The baht weakened against the dollar after markets saw Fed Chairwoman’s comment in the overnight session that the U.S. economy has strengthened in line with the central bank’s expectation, confirming the view of gradual rate hike. The comment capped the downside move of USD/THB. Yet, in terms of foreign inflows, offshore investors continued to show interest in Thai bonds at the auction on Wednesday. The net-buy position picked up from THB4bn on Tuesday to THB17bn yesterday.

 

 

Today Market Direction at 8.30 A.M.   

 

KBank Technical Analysis

Morning

Rate

Support

Resistance

Trend (Major)

Today's Strategy

USD/THB (Onshore)

35.42

35.30

35.70

Sideway Up

Buy USD near support

USD/JPY

114.73

114.40

115.20

Sideway Up

Buy USD near support

EUR/USD

1.0625

1.0580

1.0670

Sideway Down

Sell EUR near resistance

EUR/THB

37.63

37.40

38.00

Sideway

Neutral

JPY/THB

0.3087

0.3065

0.3112

Sideway

Neutral

 

Foreign Exchange Market News
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