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By XE Market Analysis April 23, 2015 3:19 pm
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    XE Market Analysis: Asia - Apr 23, 2015

    The dollar eased broadly lower in N.Y. trade on Thursday, partly on easing Greece concerns, and partly due to ongoing weakness in incoming U.S. data. Higher jobless claims and soft new home sales dented USD sentiment through the session, as did slightly lower Treasury yields. EUR-USD peaked at 1.0844, just under the April 17 peak, and up from 1.0733 lows. USD-JPY topped at 120.09, and struggled in the face of exporter offers, resulting in a slide back under 119.50. USD-CAD softened to 1.2124 lows, as higher oil prices, and retreating odds for another BoC rate cut.

    [EUR, USD]
    EUR-USD popped to one-week highs of 1.0844, before the rally ran out of steam. As was the case on Wednesday, talk of option, reserve manager and real money selling over the figure was heard. The rally came as Greek yields continued to drop as officials noted progress in the reform talks, although creditors don't seem to share Greece's optimism that a deal on further aid pay-outs can be found by the end of April. The euro faded under 1.0830 into the close, ahead of Friday's Eurogroup meeting on Greece.

    [USD, JPY]
    USD-JPY managed to eek out an eight session high of 120.09, though continued Japanese exporter offers would not let the pairing climb further. From the early session peak, the pairing then turned south, following the dollar's broadly weaker backdrop. The bleeding was stopped at 119.48 lows, just over the Wednesday base, and just under the 20-day moving average. USD-JPY remains in range trade mode overall, largely maintaining a 118.50 to 120.50 band over the past six weeks or so.

    [GBP, USD]
    Cable retreated to 1.4960 after softer U.K. retail sales data, though recovered the 1.50 handle in early N.Y. trade, as the greenback came under broad pressure. Cable followed EUR-USD higher through the remainder of the session, eventually peaking at 1.5070 into the close.

    [USD, CHF]
    EUR-CHF gave back some of Wednesday's gains, falling to 1.0314 lows. The SNB said on Wednesday it would reduce the number of institutions exempt from negative interest rates on sight deposits, and could open the door for more negative rates in the near future, perhaps to offset a potential Greece EMU exit. Today's retracement came on profit taking, though with the threat of interest rate moves, shorts will be wary going forward.

    [USD, CAD]
    USD-CAD has traded through 1.2200, on its way to lows of 1.2190. The 100-day moving average near 1.2220 had provided support over the past two sessions, though having broken under it decisively, the pairing tested the April 20 low of 1.2178, and broke through on its way to a one-week low of 1.2122. Higher oil prices helped CAD sentiment at the open, while domestic name USD-CAD selling into 1.2250 got the ball rolling.

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