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By XE Market Analysis April 1, 2014 3:16 pm
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    XE Market Analysis: Asia - Apr 01, 2014

    The dollar was mixed in fairly quiet N.Y. trade on Tuesday, as EUR-USD briefly reclaimed the 1.38 handle, and USD-JPY ran up to highs of 103.70. USD-CAD moved under 1.1015, though solid support is expected at 1.1000. Cable meanwhile, recovered from lows under 1.6620. Wall Street moved higher again on Tuesday, as Treasury yields moved higher. The dollar briefly edged lower after the U.S. manufacturing ISM headline missed consensus slightly, and construction spending was in-line, though reaction was muted.

    [EUR, USD]
    EUR-USD traded breached the 1.38 handle twice in N.Y., though failed to hold both times. A EUR-USD N.Y. close over 1.3800 would have been bullish for the pairing said sources, and would open the door to Asian session buying. Stops are noted at 1.3830 now, though in the meantime, option and real money selling interest has been reported over 1.3800.

    [USD, JPY]
    USD-JPY moved to better than three-week highs, topping out at 103.70 on better risk levels, and the start of the new Japanese fiscal year. The new year has reportedly seen investors allocate abroad, helping dollar-yen. In addition, the start of the new 3% sales tax has heightened hopes for fresh BoJ stimulus. The March 7 peak of 103.76 will be the first resistance point, though above there, 104.00 will likely be targeted where option barriers sit, along with other structures.

    [GBP, USD]
    Sterling dipped on U.K. data as the Markit manufacturing PMI for March unexpectedly dipped to an eight-month low of 55.3 in March, while the February reading was revised notably lower, to 56.2 from 56.9. The data contrasted Eurozone PMI reports and forecast-beating German labour numbers, and has seen EUR-GBP spike above 0.8290 from the mid 0.82s. Cable stayed down through the N.Y. session, peaking over 1.6650 and finding a floor under 1.6620.

    [USD, CHF]
    Switzerland's SVME manufacturing PMI disappointed, dipping to a 54.4 headline from 57.6 in February. This was below the consensus forecast of 56.7 and is the lowest in three months. There was little FX impact, and both USD-CHF and EUR-CHF remained rangebound.

    [USD, CAD]
    USD-CAD posted 1.1070 highs in London, rallying modestly from its Asian low of 1.1047. Domestic names were the sellers of note early in the session, taking the pairing under 1.1040. Despite better Canadian GDP on Monday, and better risk levels so far this week though, the CAD has held the key 1.1000 level. A thick layer of bids is seen into the figure, but large stops are reported just underneath. USD-CAD touched 1.1012 lows before heading back over 1.1035, partially due to weaker oil prices.

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