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By XE Market Analysis August 17, 2018 1:35 pm
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    XE Market Analysis: Asia - Aug 17, 2018

    The Dollar index dipped early N.Y. trade on Friday, bottoming at 96.22 after opening near 96.50. Incoming U.S. data was mixed, with consumer sentiment missing the mark, while leading indicators were better than consensus. The data has little impact on FX, with the Greenback slipping ahead of the numbers. A calm Turkish Lira allowed the USD to decline into the weekend. EUR-USD made its way from 1.1380 to 1.1422 highs, while USD-JPY ranged between 110.52 and 110.59, while USD-CAD fell to 1.3068 following hotter Canada CPI. Cable was steady over 1.2725.

    [EUR, USD]
    EUR-USD has held the 1.14 handle since early in the session, as it rallied from opening lows of 1.1380, to a high of 1.1422 after the weaker U.S. sentiment data. The relative stability of the Turkish Lira has allowed the Euro to bounce through the N.Y. session, though with the weekend at hand, the market has been unwilling to push EUR-USD to the upside.

    [USD, JPY]
    USD-JPY has remained near its lows if the week through the N.Y. session, bottoming at 110.32, and managing a high of just 110.59. The tentative risk backdrop has kept a lid on the pairing, while uncertainty over the impact of Turkey;s crisis on global emerging market currencies has kept the risk-sensitive Yen bid up. USD-JPY support now comes in at Monday's low of 110.12.

    [GBP, USD]
    Cable posted its sixth consecutive week of declines, needing only to close out Friday lower than 1.2769-70. Up from its 1.2698 lows, the Pound showed a fractional gain on the Dollar. Political and associated Brexit-related risks are keeping Cable in a lower trading band than it otherwise would be. Negotiations re-commenced between the UK and the EU yesterday. Latvia's foreign minister said earlier that there was a 50-50 chance for there being a no-deal Brexit, which UK's foreign minister, Hunt, concurred with, remarking that "time is running out."

    [USD, CHF]
    EUR-CHF recovered to 1.1367, after diving to one-year lows of 1.1243 on Wednesday, as the Euro stemmed its bleeding on Friday, as the Turkish Lira stabilized.

    [USD, CAD]
    USD-CAD took a tumble after the surge in Canada CPI. The pairing fell from 1.3145 to 1.3068 lows immediately following the data. Firmer WTI crude prices had put a cap on USD-CAD overnight, limiting gains to 1.3169 during the Asian session. Wednesday' low of 1.3047 is the next downside target.

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