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By XE Market Analysis February 1, 2019 4:08 pm
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    XE Market Analysis: Asia - Feb 01, 2019

    The Dollar rallied on the back of better than expected jobs, ISM, amd U. Michigan sentiment in N.Y. on Friday. The DXY bounced to 95.63 from lows of 95.40. Wall Street was mixed after a week of solid gains, while Treasury yields edged up on the data as well. EUR-USD ranged between 1.1458 and 1.1488, while USD-JPY outperformed, rallying to 109.59 from opening lows near 108.80. USD-CAD fell to 3-month lows of 1.3068 as oil prices surged. Cable meandered inside of 1.3050 and 1.3102.

    [EUR, USD]
    EUR-USD fell to lows of 1.1446 after the manufacturing ISM release, though buyers entered the fray above the 100-day moving average, which sits at 1.1441. The pairing subsequently rallied to 1.1488, before settling in on wither side of 1.1460. The solid U.S. data ultimately provided support to the Dollar more generally.

    [USD, JPY]
    USD-JPY topped at 109.59 after the London close, coming from opening lows of 108.90. The mostly solid U.S. data was a major driver of the pairing, through the session, with the pairing reacting to the jobs report, then rallying further following the stronger ISM and Michigan sentiment outcomes. Firmer Treasury yields provided support as well. USD-JPY is back over its 20-day moving average, and the next upside target will continue to be the 110.00 level.

    [GBP, USD]
    Cable came under pressure after the release of a disappointing UK manufacturing PMI report, printing an eight-day low at 1.3043. The January manufacturing PMI fell to 52.8, down from 54.2 in December and well off the median forecast for 53.5. The report sharped market focus on the economic impact that Brexit uncertainty is causing. The Pound later rallied to just over 1.3100, before settling near 1.3075.

    [USD, CHF]
    EUR-CHF has settled back in the 1.1400s after yesterday clocking an 11-week high at 1.1429. The price action extends a phase of relatively high volatility that the franc has seen, which has been through several periods of pronounced underperformance over the last month, and which have often been accompanied by talk/suspicions of SNB intervention.

    [USD, CAD]
    USD-CAD has traded to near three-month lows of 1.3068, after peaking at 1.3135 following the 10:00 ET round of U.S. data. WTI crude prices rallied to two-month highs over 55.60, up 3%, which has been the main driver of CAD strength this afternoon. The pairing looks set to close under its 200-day moving average, currently at 1.3127, for the first time since October 3, 2018.

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