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By XE Market Analysis April 19, 2017 2:51 pm
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    XE Market Analysis: Asia - Apr 19, 2017

    The dollar managed modest gains against major currencies in N.Y. trade on Wednesday, though EUR-USD found buyers into the 1.0700 mark. USD-JPY meanwhile, topped at 109.18, though had difficulty holding the 109 handle in afternoon trade. Cable gave back some of Tuesday's sharp gains, bottoming near 1.2770, while USD-CAD rallied to one-month highs as WTI crude collapsed to under $51.00. Wall Street was mixed, while yields edged higher.

    [EUR, USD]
    EUR-USD eased from N.Y. session highs of 1.0729, later finding support into the 1.0700 mark. Given recent euro gains, and the proximity and the uncertainty of the France election on Sunday, we expect further EUR-USD upside will be limited into the weekend. Indeed, there is potential for position squaring activity to weigh on the pairing until then.

    [USD, JPY]
    USD-JPY has reclaimed the 109 handle, topping at 109.18, and just under Tuesday's peak of 109.22. An improved risk backdrop, resulting in higher equities and yields has supported, though with N. Korea still at issue, further gains may be hard to come by. The pairing is however, back over its 108.80 200-day moving average, and a close above the level could result in a more positive technical picture.

    [GBP, USD]
    The pound consolidated gains seen yesterday, following the PM's call for a snap election. The thinking in markets is that the Tory Party would likely win a much a bigger majority than present, which would give the Prime Minister much more flexibility in upcoming negotiations with the EU. One risk for the pound would be a strong vote for the Scottish National Party on June 8, which would increase the odds for a new independence vote. Cable eased to 1.2772 in N.Y. trade, below the intraday peak at 1.2859 and yesterday's six-month high at 1.2908.

    [USD, CHF]
    EUR-CHF remained heavy on Wednesday, briefly printing 1.0677 before moving up into 1.0696 highs, and leaving Friday's one-month lows of 1.0666 in the rear view mirror. The pairing was able to hold above its 50-day moving average into the close. Underlying geopolitical concerns should keep the CHF supported for the time being.

    [USD, CAD]
    USD-CAD printed two-week highs of 1.3443 at the North American open, up from 1.3375 lows seen in Asia. Oil prices remained soft, supportive of the pairing, while the greenback overall perked up a bit this morning. Later, as oil prices retreated under $51, USD-CAD rallied to one-month highs of 1.3477. After finding solid support into its 200-day moving average (1.3226) last week, the pairing has since rallied through its 50-day (1.3305), and 20-day (1.3360) moving averages, and taking out the April high of 1.3456.

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