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By XE Market Analysis August 30, 2013 2:47 pm
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    XE Market Analysis: Asia - Aug 30, 2013

    The dollar was mostly firmer in N.Y. trade on Friday, though activity was light into month-end, and a long North American weekend. U.S. data was mixed, with consumption lagging some, and the Chicago ISM a bit better than forecast. Stocks were mostly underwater, though modestly, while Treasury yields were a bit softer. More tough talk from U.S. Sec. State Kerry on Syria dented equities in late trade, though had little impact on the dollar. Looking ahead, assuming no action in Syria this weekend, focus will be on the August U.S. employment report, which will likely harden opinions on a September Fed taper.

    [EUR, USD]
    The dollar slipped slightly following the lighter consumption data, taking EUR-USD over 1.3240 from near 1.3230. That was the high of the sesson however, as month-end sellers returned. EUR-USD gave up the 1.32 handle on its way to 1.3174 lows. Stops were a factor at the figure, though Asian buyers reportedly returned. This was EUR-USD's lowest in a month.

    [USD, JPY]
    USD-JPY traded a 98.06 to 98.34 band in N.Y. on Friday, after basing at 97.89 in London trade, on option flow and EUR-JPY selling. Japanese names were early sellers from the 98.25 area following the overnight failure to sustain a move over 98.50. Large 98.00 option expiries exerted an influence, according to sources, while EUR-JPY also met a bout of fund selling amid weaker than expected German retail sales data. Month end conditions kept things hemmed in through the session.

    [GBP, USD]
    Cable traded at intra-day lows close to 1.5460. Activity was extremely low since the N.Y. session got underway. Month-end and a long weekend in the U.S. has kept FX traders mostly sidelined. A combination of Thursday's weak close and dollar demand kept it pressured throughout despite more U.K. data firmness today.

    [USD, CHF]
    EUR-CHF pulled back from the 1.2330 area and moved into 1.2280 in N.Y. trade. Appetite was low due to month-end, along with next Monday's holiday in the U.S. and event risks in the latter part of the week, tjpigh uncertainty over Syria kept the CHF firm.

    [USD, CAD]
    USD-CAD eased slightly after the mix of data, where Canada GDP was a touch firmer than forecasts and U.S. consumption was soft. The pairing eased back to 1.0525 lows, though found support ahead of 1.0500 bids. With the USD firming up elsewhere, USD-CAD downside ran its course, and the pairing made it back over 1.0550. Thin conditions in afternoon trade saw the pair slide under 1.0510, apparently on a one off sell-order.

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