Morning Forex Overview

Daily Forex Fundamentals | Written by Dukascopy Swiss FX Group | Mar 27 09 08:23 GMT |

Previous session overview The dollar fell against the yen in Asia Friday because Japanese exporters sold the greenback to settle their accounts for the fiscal-year-end book-closing on March 31. On Thursday, most major USD cross rates, including EURUSD, entered calmer waters after some nervous market swings recently. During the morning session in Europe, EURUSD hovered in a sideways trading pattern between USD1.3550 and USD1.36. The pair trended cautiously higher early in US trading. Sterling opened lower at USD1.4578 after a weaker than expected Retail Sales Report showing a -1.9% decrease last month. Prices jumped to a morning Hi of USD1.4640, before following equity prices lower, to a morning low of USD1.4475. Traders brought prices to a daily Lo of USD1.4426, before closing the day-session at USD1.4439. The yen fell on Thursday as sharp gains on Wall Street led by consumer shares along with the surge in oil, gold, and other base metals offset persistent concerns about the viability of the U.S. banking system, dampening the Japanese currency's safe-haven appeal. Steady but consistent growth in global equities markets' so-called bear market rally continued to support the Australian dollar in late Asian trade Friday. The Australian dollar continued to hug the USD0.70 mark tightly Friday, providing some speculation it may be forming a firmer base around that psychologically important figure. Market expectation Dollar is unlikely to continue falling, dealers said, because many short-term-focused investors are refraining from dealing actively ahead of an event-rich next week. Several traders spoke about a disconnection between stocks and currencies - with risk aversion still more prevalent in foreign exchange trade. Others talked about the yen being supported by repatriation of funds before the end of the Japanese fiscal year. Still, the euro remained inside its recent tight range against the dollar. EURUSD currently holding inside Thursday's NY range, with traders suggesting the pair remains stymied ahead of next week's ECB rate announcement and G-20 summit. Decent bids said to come in under USD1.3500, with stops then noted in the USD1.3470 area, ahead of this week's lows in the USD1.3420 zone. Offers come in on approach to USD1.3600, more at USD1.3640/50 and USD1.3670. Technical analysts saying dollar-yen has pushed over Fibonacci and resistance line at JPY98.24/30, supported by a bull-cross in the stochastic study, 10-day momentum and now 5&21-DMAs. Main support is back at JPY93.40/57 with JPY96.10/25 and JPY94.51 ahead of there, while the MAs lend initial support at JPY97.70/00. Dukascopy Swiss FX Group Legal disclaimer and risk disclosure This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.