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By XE Market Analysis December 10, 2018 2:55 pm
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    XE Market Analysis: Asia - Dec 10, 2018

    The dollar was higher in N.Y. on Monday, taking the DXY to seven-session highs of 97.21, up from pre-open levels of 96.55. Stock market volatility reared its head again, leading to safe-haven Dollar buying. Cable losses led USD gains, as P.M. May postponed the parliamentary Brexit vote, leading the Pound to 20-month lows near 1.2500. EUR-USD was dragged lower by Sterling, bottoming at 1.1353. USD-JPY remained firm, peaking at 113.25 on the back of weak Japan GDP, and a recovery on Wall Street late in the session. USD-CAD meanwhile, traded over 1.3400 again, as oil prices plunged below levels seen before the OPEN output cut.

    [EUR, USD]
    EUR-USD traded sideways until late morning, ranging between 1.1394 and 1.1428, though later slid to intra day lows of 1.1353. The move came in tandem with Cable's dive to 20-month lows of 1.2508 from over 1.2650, following PM May's announcement to delay the parliamentary vote on Brexit.

    [USD, JPY]
    USD-JPY rallied briefly over the 113.00 mark early in the session, with gains coming despite another risk-off morning, as Wall Street slumped again. Japan's Q3 GDP revision, which came in much weaker than expected, weighed on the Yen since the overnight session, while ongoing U.S./China trade concerns remained a factor as well. Later, as stocks rebounded, USD-JPY topped at 113.25.

    [GBP, USD]
    Sterling crashed into following the PM's address before parliament, printing a 20-month low versus the dollar at 1.2506, a 1.8% loss to the dollar on the day. The UK prime minister's decision to delay the parliamentary vote on the Brexit deal went down like a lead balloon, and is being taken as weakening her position further, adding to political drama and uncertainty. May admitted before the House of Commons that she would have lost the vote by a large margin, and said that she is delaying the vote so she can discuss "further reassurances" with EU partners with regard to fears that Irish border backstop indefinitely tying the UK to the EU.

    [USD, CHF]
    EUR-CHF dove to near three-month lows of 1.1239 in N.Y. on Monday, with losses coming from the combination of a lower EUR-USD and the delay of U.K. parliament vote on Brexit, which gunned up the CHF's save-haven credentials. Another risk-off day in Europe weighed on the cross as well.

    [USD, CAD]
    USD-CAD is on session highs of 1.3405, up from overnight lows of 1.3293. The CAD retained some strength from Canada's stellar jobs report, though the sell-off in oil prices has tempered that good news. WTI crude traded to $51.12 lows, down over $1/bbl from overnight highs, and from $54.22 highs on Friday, before OPEC agreed to cut production by 1.2 mln bpd. USD-CAD resistance comes at 1.3445, last week's trend high.

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