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By XE Market Analysis April 11, 2014 2:26 pm
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    XE Market Analysis: Asia - Apr 11, 2014

    The dollar attempted to rally in morning trade in N.Y. on Friday, following a week of persistent USD selling. The pre-weekend position paring didn't last terribly long however, and the unit make its way lower in light afternoon dealings. EUR-USD managed to print 1.3900, though was capped just over the figure. As was the case on Thursday, the euro stayed near its highs into the close. USD-JPY based under 101.40 in early trade, managing highs later of 101.70 as Wall Street briefly rallied. On the data front, PPI and Michigan sentiment were firmer than forecasts, though were both largely overlooked.

    [EUR, USD]
    EUR-USD dipped to 1.3870 in early trade, weighed down slightly by hotter U.S. PPI data. Losses were short lived however, as the pairing made its way to just over 1.3900 before stabilizing. Good selling interest remains over 1.3900, though the very shallow pullback from the peak may imply further euro upside next week.

    [USD, JPY]
    The dollar perked up briefly following the hotter PPI outcome, taking USD-JPY up ten points to 101.55. The pairing touch 101.60 after better sentiment data, and printed 101.70 highs as Wall Street briefly ralled. Overall though, dollar-yen looks to be in sell the rally mode, with lower daily highs seen over the past five sessions.

    [GBP, USD]
    Cable settled in the mid 1.67s after a bullish week with data having confirmed robust economic revival. The RICS house price balance for March was much stronger than expected, while official U.K. production data smashed expectations and led to upward tweaks in Q1 GDP forecasts. Cable did pull back 50 points or so to 1.6720 in early N.Y. trade, perhaps as profit taking set in ahead of the weekend.

    [USD, CHF]
    EUR-CHF has settled back below 1.2200 again, after making a two-month high of 1.2249 last Friday. The recent up-move reflected an unwinding of the Swiss franc's safe-haven premium, though lower stock markets, persisting geopolitical concerns with Russia, and weak China trade data have reversed this. The cycle low of 1.2104 is a key support, while below 1.2100 the risk of SNB intervention would ratchet up.

    [USD, CAD]
    USD-CAD traded up to 1.0983, up from London lows of 1.0919. Risk-off trading conditions continued on Friday, with equities under water yet again. Option backed USD-CAD offers are seen into 1.1000, though with incoming Canadian data generally besting forecasts of late, upside will likely be limited going forward. The pairing settled into a 1.0950-70 band in light afternoon dealings.

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