XE Market Analysis: North America - Aug 27, 2018
The Dollar majors settled in narrow ranges during a London-less European AM session after the U.S. currency had rebounded some after posting fresh losses against the Euro and some other currencies during the early Asia-Pacific session. The USD index (DXY) was near flat, at 95.17, as of the late morning in Europe having lifted out of a three-session low at 95.00, which was seen in early Asia. EUR-USD settled above 1.1600 after posting a peak a 25-day peak at 1.1654. USD-JPY drifted lower, settling in the lower 111.0s after basing at a 110.93 low. This followed a short-lived lifted in early Tokyo trade, which left an intraday high at 111.34. The pair is in a consolidation after scaling to a three-week high on Friday at 111.48. Ditto for Yen crosses, which also turned lower after early-Tokyo-session gains. In EUR-JPY's case the early gain pushed the cross to a 25-day peak at 129.68. There hasn't been too much by way of fresh directional leads. Stock markets in Europe and Asia rallied, and S&P 500 futures extended gains seen in regular Wall Street trading on Friday. Chinese shares were supported by a rise in the Yuan to a two-and-a-half-week high after the PBoC's announced on Friday a re-introduction of a "counter-cyclical factor" in its daily fixing of USD-CNY as a means to halt a four-month tumble of the Chinese currency. The PBoC set the USD-CNY reference rate today at 6.8508, sharply down from Friday's 6.8710 fix.
