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By XE Market Analysis February 10, 2015 3:07 pm
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    XE Market Analysis: Asia - Feb 10, 2015

    The dollar was mixed in N.Y. trade, climbing against the yen and the CAD, losing some ground to the pound, while staying fairly static versus the euro. There was little in the way of data to drive prices, and wholesale data was largely overlooked. EUR-USD touched lows of 1.1282 early on, before turning to 1.1327 highs. Activity in this pairing was light as traders awaited the upcoming Eurogroup and EU leaders meetings on Greece. USD-JPY reacted to better risk levels and higher yields, and moved to one month highs of 11962 in morning trade. USD-CAD meanwhile, got caught up in another oil price slide, making a one-week high over 1.2620. WTI crude slid to $49.94 lows, down sharply from session highs over $52.50.

    [EUR, USD]
    EUR-USD continued to trade on either side of 1.1300, remaining side of a broad 1.1250-1.1350 trading range. More of the same can be expected through the session, as markets remain focused on Greece, and await the upcoming Eurogroup and EU leaders meetings. We continue to think EUR risk remains to the downside, Greece issues not withstanding, with further pressure likely to come once the ECB's QE program kicks off in earnest.

    [USD, JPY]
    USD-JPY rallied to levels last seen on January 9, peaking earlier at 119.62, and holding the 119.20 level since. The uptick in U.S. yields, along with rallying equity markets has provided good support, while there was talk during the London morning session that new carry trade interest was initiated. Resistance comes in at 119.85, the January 9 high.

    [GBP, USD]
    Sterling logged a two-week low against the euro amid a drop in EUR-USD below 1.13,, while Cable has managed to rebound to the 1.5230-40 area after briefly testing the waters under 1.5200.. The pound found a bid following an upside surprise in UK manufacturing output data, which came in at 2.4% y/y in January, up on the median for 2.1% and from an upwardly revised 3.0% in November. Cable was rangebound in N.Y. managing a 1.5215 to 1.5275 trading band.

    [USD, CHF]
    EUR-CHF is trading lower, back near 1.05 amid a generally softer euro. SNB's Jordan said over the weekend that the central bank is prepared to intervene in EUR-CHF if necessary, that, "We are observing the exchange rate situation as a whole ... If necessary we are active," but, " ... we do not speak about our transactions." He said that the franc remains "clearly overvalued" at around 1.0500, but said refrained to comment on what it considers the preferred franc levels or what it sees as a fair value. An "informed source" of the Tages Anzeiger newspaper last week said that the SNB is initiating a "soft floor" in EUR-CHF at 1.05-1.10. SNB's vice-chairman Danthine in late January that the SNB was still "fundamentally prepared to intervene in the foreign exchange market," and that Singapore's SGD basket policy "deserved closer examination." The SNB was widely reported to have intervened last Thursday from levels near 1.0500.

    [USD, CAD]
    USD-CAD rallied up over 1.2500 early in the session, and remained above the figure since. The pairing first touched 1.2537 highs, the move up coming in concert with the latest oil market sell-off. WTI crude fell to $50.76 lows, before recovering to just over $51.00. Stops were later tripped over Friday's high of 1.2546, which opened the door for a 1.2580-1.2600 test. As oil dipped under the key $50 mark, USD-CAD broke through 1.2600, on its way to 1.2620 highs. The February 3 high of 1.2644 marks next resistance.

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      abiaaron's picture
      abiaaron Posts: 1

      These stats are going to change again due to the change in the prices of oil. We all must stay tuned to GxMarkets.com for updated Forex News.

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