Wednesday, March 29, 2023

Currency Markets Shrug After Moderna Announcement


The Moderna (NASDAQ:) vaccine announcement had a negligible effect on currency markets overnight. Asian and G-10 currencies were almost unchanged for the session, with only the pro-cyclical Canadian, Australian and New Zealand dollars outperforming. The US yield curve steepened after the Moderna announcement, and that is likely to have offset any rotation momentum in the short-term. The net result being a nil-all draw as far as currency markets are concerned.

Asian currencies have edged higher in Asia this morning after the PBOC set the fixing at 6.5762, the strongest yuan fix since June 27th, 2018. With the PBOC showing no signs of discomfort over the yuan appreciation, regional currency appreciation is set to continue, although local central banks in countries such as South Korea and Thailand, will probably tactically “smooth” gains.

The rally petered out ahead of its 100-day moving average at 105.75, with the 5-month trendline resistance at 105.65 capping gains. USD/JPY has fallen 115 points to 104.50 since then and now looks poised to retest its November lows near 103.20. Only a further steepening of the US yield curve appears likely to delay, and it is notable that higher US yields overnight still saw USD/JPY edge lower.

The almost unchanged ranges seen overnight is likely to be a mere delay to further dollar weakness. Amongst the majors, the , , , and Commonwealths all look poised for more technical gains.

Getting back to the Covid situation, restrictions continue ramping up in Europe, with Sweden the latest to unveil tough restrictions on public gatherings. The situation in the United States is particularly worrisome, with new state-wide restrictions seemingly every day. The election stand-off is complicating the picture, and it seems inevitable that US economic data will suffer into Q4. The goings-on in America matters greatly, of course, as it represents 25% of global GDP.

Original Post

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here



Related Stories