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By XE Market Analysis April 10, 2015 2:31 pm
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    XE Market Analysis: Asia - Apr 10, 2015

    The dollar was mixed in N.Y. trade on Friday, though EUR-USD traded to new three-week lows under 1.0570, before recovering some on short covering interest. USD-JPY opened on highs over 120.45, though made its way under 120.10 in subsequent dealings, before settling in near 120.20. USD-CAD, which was bid up ahead of the Canadian jobs report, slipped from over 1.2650, as the data were better than expected, and as oil prices rallied. The pairing touched 1.2572 lows in subsequent dealings. Cable reclaimed the 1.46 handle, after touching new trend lows under 1.4590. Firmer export prices and softer import prices weighed on the dollar initially, though had little overall impact.

    [EUR, USD]
    EUR-USD reclaimed the 1.06 handle, trading to 1.0635 highs, after making three-week lows of 1.0568 early in the session. Following the nearly 500-point sell off seen this week, some short covering was expected, though with today marking the fourth consecutive day of lower daily lows and lower daily highs, the euro's bear trend is expected to continue next week. Indeed, EUR-USD moved back into 1.0580 after the London close.

    [USD, JPY]
    USD-JPY has settled modestly lower after surging to a three-week peak of 120.74 during yesterday's dollar-led rally. The Nikkei stock index briefly traded above 20k, which invited some yen selling, which proved to be short-lived. USD-JPY peaked at 120.47 in early N.Y. trade, before spending much of the morning slipping back under 120.10. Some buying was noted into the London close, though static conditions prevailed from there, with the dollar hanging near 120.20 into the close.

    [GBP, USD]
    Cable posted a new trend low in N.Y. on Friday, trading under 1.4590 for the first time since June of 2010. The dollar's general strength along with rising concerns over hte upcoming U.K. election, should keep sterling on the defensice for the time being, with potential for calbe to test the May, 2010 low of 1.4260.

    [USD, CHF]
    EUR-CHF has established a lower trading range under 1.0500, posting levels last seen in January of 103.90 on Thursday. There have been some analyst notes in circulation highlighting further policy options the SNB has available to try and keep a lid on the franc (including cutting rates deeper into negative territory). The SNB said at its March policy review that the franc is "significantly overvalued and should continue to weaken over time," and that, in a shot across the bows of the market, said it will continue to take account of the franc rate situation in policy decisions and "remain active in the foreign exchange market, as necessary."

    [USD, CAD]
    USD-CAD fell from session highs over 1.2650 back into 1.2600 following the much better than expected Canadian employment report. The pairing had rallied from 1.2635 to 1.2665 ahead of the data, with last minute short covering driving the move, in expectations for a soft outcome. As oil prices later moved up, USD-CAD gave back the 1.26 handle, on its way to 1.2572 low, just under its overnight base.

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