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By XE Market Analysis April 24, 2014 1:40 pm
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    XE Market Analysis: Asia - Apr 24, 2014

    The dollar reacted to rumors of an "emergency" press conference from Putin, taking the greenback higher versus the euro and lower against the yen. Yields dipped, and equities sold off as well, though after a denial of such a presser, markets reversed themselves to a degree. EUR-USD traded into 1.3790 before bouncing back over 1.3830, while USD-JPY tumbled to one-week lows of 102.09 before edging back over 102.35. U.S. data had little impact, which revealed higher than expected weekly jobless claims, and a strong durables report. Overall, range trade continued to dominate the FX market, as it has largely done though the week.

    [EUR, USD]
    EUR-USD opened near 1.3830, before sliding to 1.3790 lows. The pairing rebounded back over 1.3830 as risk appetite returned following the denial of a Putin press conference, though the ECB must not have liked the rally, as Coene was wheeled back out to talk up rate cuts, euro strength cutting into competitiveness and risk of low inflation in April "forcing the ECB to act." The talk had little impact.

    [USD, JPY]
    USD-JPY failed to the upside again, peaking at 102.64 before sliding back to lows of 102.09. Intra day stops were noted under 102.25, though larger stops are reportedly building at 102.00 now. Ahead of next week's BoJ meeting, we look for downside USD-JPY risk, and think yen bears will be disappointed when the Bank makes no hints of further stimulus measures. The pairing later climbed back to 102.30 from its lows, as Wall Street recovered, and as yields inched higher. Rumors of a Putin press conference this morning were denied, though fresh USD-JPY offers were said to be coming in from 102.40, which could keep the pressure on, and stops under 102.00 in focus.

    [GBP, USD]
    U.K.CBI distributive trades survey beat expectations, with the headline realized sales balance coming in at +30in April, up on the Reuters median for +17 and more than doubling from the February +13 reading. The data had little impact on cable however, which again found itself capped over 1.6800. Sterling fell to N.Y. lows of 1.6765 on the Putin presser rumor, thugh later rebounded to trade on either side of 1.6800 in light afternoon dealings.

    [USD, CHF]
    EUR-CHF fell from highs near 1.2215 to under 1.2190 on the morning talk of an "emergency" Putin press conference. Save haven flows supported the CHF through the remainder of the session, with uncertainty continuing in the crisis between the Ukraine and Russia. The cross moved off its worst levels when some risk appetite returned, though was never able to reclaim the 1.22 handle.

    [USD, CAD]
    USD-CAD managed a 1.1016 to 1.1037 trading range since the North American open, moving to session highs on the back of risk-off trade (Putin's rumored press conference), before easing back under 1.1030, as risk taking improved. The past five sessions have seen USD-CAD inside 1.0998 to 1.1053, with range trade mentality deeply ensconced for now.

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