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By XE Market Analysis April 17, 2014 3:33 pm
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    XE Market Analysis: Asia - Apr 17, 2014

    Lower than expected jobless claims and a firmer Philly Fed index supported the dollar in light Thursday N.Y. trade. Yields edged up as well, though Wall Street struggled to move higher. After opening near 1.3860, EUR-USD slipped to lows under 1.3820 before steadying. USD-JPY meanwhile, traded over 102.40 on the back of higher U.S. yields. USD-CAD moved under 1.1000 following hotter Canadian CPI, though later reclaimed the 1.10 handle. Activity died down after the London close, ahead of a\the long Easter weekend for many.

    [EUR, USD]
    The dollar was marginally higher after the London close, with gains coming in tandem with firmer Treasury yields. The FX market thinned out early though, with many heading for the exits into the Easter long weekend. EUR-USD approached the bottom of its 24-hour range, under 1.3820, coming from opening highs near 1.3860. Support around 1.3800 has been ongoing, though with U.S. data on the mend, and the EBC looking to talk down the euro, EUR-USD may be a good sell at current levels.

    [USD, JPY]
    USD-JPY dipped about 35 pips to a low of 101.86 in Asia, though subsequently settled over the 102.00 level in early N.Y. The better U.S. data, and accompanying higher Treasury yields supported the pairing through the session, seeing the dollar rally over 102.40. With new BoJ stimulus still uncertain though, USD-JPY buyers will be wary.

    [GBP, USD]
    Cable settled to consolidation after punching above its Feb-17 major trend peak at 1.6822 and logging a fresh cycle high of 1.6842. The move was mostly reflective of general dollar softness following Yellen's speech, though sterling has remained broadly underpinned following Wednesday's stellar labour market report. Cable traded back under 1.6800 as the dollar's tone firmed in N.Y. on better U.S. data, and pre-long weekend position adjustments.

    [USD, CHF]
    EUR-CHF made its way to 1.2199 highs in N.Y. on better risk taking levels. Four-party talks in Geneva on the Ukraine appeared to make some progress, which generally helped the CHF lower. Though it won't take much in the way of troop movement or skirmishes to take the CHF higher going forward.

    [USD, CAD]
    USD-CAD fell to session lows after the hotter Canadian CPI, and lower U.S. jobless claims outcomes, with the pairing touching 1.0993 from earlier highs of 1.1018. The inflation data shouldn't have much impact on BoC thinking however, and won't have lasting impact on the CAD. USD-CAD has moved back over 1.1000, though in pre-holiday trade, ranges remained narrow.

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