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By XE Market Analysis April 24, 2015 3:20 pm
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    XE Market Analysis: Asia - Apr 24, 2015

    The dollar was mixed in N.Y. trade on Friday, losing ground to the yen and pound, while rallying versus the CAD, and staying choppy against the euro. Uncertainty over the Greece crisis outcome has been pushed back again, as no agreement was reached at the latest Eurogroup meeting. EUR-USD as a result was rather rudderless on Friday, meandering between 1.0805 and 1.0879 through the session. Disappointing durable goods data and softer yields did the dollar no favors either, though an earnings inspired Wall Street rally kept risk levels somewhat elevated. USD-JPY broke under 118.90, after peaking over 120 on Thursday, while USD-CAD held support at 1.21, and rallied over 1.2180 on softer oil prices. Cable meanwhile posted nearly two-month highs over 1.5180.

    [EUR, USD]
    EUR-USD fell back into London opening levels, touching 1.0805 lows in early trade. The 1.0800 mark provided support, and stops noted under the overnight low of 1.0785 seen in Asia remained out of reach. Overall, trade i=was relatively light, and the euro eventually bounced over 1.0860 after the London close. The Greek crisis remains in limbo after the no-progress Eurogroup meeting, where it appeas the issue will be kicked down the road until the May meeting.

    [USD, JPY]
    USD-JPY gave up the 119 handle, after posting four consecutive higher daily highs this week, culminating in an eight session peak of 120.09. Softer U.S. yields weighed some, though with no further BoJ stimulus expected until Q4, yen bears appear to be giving up on help from the central bank. In addition, the dollar has lost some of its shine of late, as U.S. data disappoints, and as prospects for a Fed rate hike are pushed further and further out. The 118.50-20 region is likely to provide USD-JPY support for now, though a break of 119 should open the door for a move to the 116 handle.

    [GBP, USD]
    Cable has lifted to nearly two-month highs of 1.5186, taking out the Mar-18 peak at 1.5169 in the process. This has been a technically constructive week for Cable, which has rallied from sub-1.49 levels largely on the back of a generally softer dollar, although the upbeat tone of the BoE minutes from the April MPC meeting provided some sterling-specific support.

    [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. The retracement came on profit taking, though with the threat of interest rate moves, shorts will be wary going forward.

    [USD, CAD]
    USD-CAD rallied over 1.2180, after finding good support into the 1.2100 level earlier in the session. Aside from USD-JPY, which continued on a softer footing, the greenback made up some ground through the morning session, including against the CAD. Oil prices provided a lift to USD-CAD, as WTI fell over $1/bbl to $56.50 lows. Traders now see scope for a move back to 1.2200, should oil prices remain on the defensive.

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