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By XE Market Analysis February 7, 2014 2:49 pm
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    XE Market Analysis: Asia - Feb 07, 2014

    The dollar spiked broadly lower following the weaker U.S. employment report on Friday, as equity futures dove, and Treasury yields pulled back. The initial reaction however, turned quickly, as the dollar crept higher, and equities ended up posting solid gains. EUR-USD popped to 1.3644 highs from 1.3575, as USD-JPY tumbled 100 points from 102.50. The euro edged back to 1.3575, though ticked back over 1.3600 through the remainder of the session. Dollar-yen meanwhile, made new session highs over 10250 in subsequent trade, before settling in around 102.30.

    [EUR, USD]
    EUR-USD spiked up over 1.3640 following the softer U.S. jobs report, though quickly edged back to pre-data levels near 1.3575, as equities rebounded. The pairing did inch slowly higher again from there, as some concerns over the U.S. labor picture lingered. The euro reclaimed the 1.36 handle into the London close, settling in around 1.3620.

    [USD, JPY]
    USD-JPY reacted fairly strongly to this morning's uptick in risk taking levels. The pairing rallied from 101.25 lows to touch 102.00, its best levels since Monday. A good floor was put in place ahead of 101.00, with Japanese bids parked in front of the figure, which likely prompted some short covering. Option backed offers are now seen from 102.00.

    [GBP, USD]
    Sterling was fractionally higher following U.K. production and trade data, which were disappointing to market expectations in the case of the former, but encouraging in the latter case. Cable edged out a four-day high of 1.6358, recovering from a sub-1.63 low following the data. Cable popped over 1.6390 after the U.S. jobs report, and eventually made its way back over 1.6400. Sterling continues to trade in a very choppy manner, though remain in sell-the-rally mode.

    [USD, CHF]
    EUR-CHF edged out a fresh one-week high of 1.2250 after the U.S. jobs report, though initilly jerked under 1.2200 on risk aversion plays. The Swiss currency quickly unwound some of its safe haven premium, as Wall Street bounced from eaarly losses. The cross had been flirting with 1.2200 amid the backdrop of risk aversion in global markets, though the steadying in stock markets has lent the cross some support.

    [USD, CAD]
    USD-CAD fell to 1.0988 lows from 1.1065 after the better Canadian jobs report, though found support ahead of 1.0980, where standing bids, and technical support were noted. The pairing moved back over the 1.1000 level quickly, as the USD overall regained some ground. Bi-polar U.S. equity futures rebounded sharply from its-post U.S. jobs report slide, helping USD sentiment overall.

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      oshun123's picture
      oshun123 Posts: 1

      I assume USD/JPY will come further down together with the S&P 500 during the next trading week. Maybe retesting the 100.00

      This will be a great place to enter a longterm long trade. I expect USD/JPY to reach 110.00 in 2014.

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