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By XE Market Analysis February 20, 2018 1:26 pm
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    XE Market Analysis: Asia - Feb 20, 2018

    The dollar was fairly steady in N.Y. trade on Tuesday, leaving the DXY over its 20-day moving average of 89.43 through the day. There was no U.S. data to drive the FX market, though trend high Treasury yields helped the greenback generally. EUR-USD bottomed at 1.2320 before edging higher, while USD-JPY was steady, maintaining altitude over 107.00. USD-CAD was supported by softer oil prices and a weaker Canada wholesale report. Cable managed to retake the 1.4000 level, though found sellers over the figure.

    [EUR, USD]
    EUR-USD bottomed at a five-session low of 1.2320, falling through its 20-day moving average of 1.2384 during the London morning session. Trend high Treasury yields had weighed on the pairing, though U.S. fiscal deficit concerns could limit EUR-USD downside going forward.

    [USD, JPY]
    USD-JPY has been quiet through the N.Y. session, ranging between 107.37 and 107.07 since the open. The rally seen since Friday's 15-month low of 105.55 kicked off on Monday, with the pairing outperforming general dollar strength since then. USD-JPY has been due a relief rally, after having fallen nearly every session for almost two-weeks.

    [GBP, USD]
    Sterling perked up on Brexit news, specifically a report that the European Parliament is putting together a detailed proposal calling for the EU to negotiate an "association agreement" giving Britain "privileged" access to the single market and membership agencies, according to unnamed sources cited by Reuters. Cable rallied from 1.3930 lows in London, to top at 1.4024 into the London close.

    [USD, CHF]
    EUR-CHF has been in consolidation mode in the mid 1.1500s over the last week after breaking lower in the week before, when a four-month low at 1.1446 was seen. The revival in risk appetite has helped prop up the cross.

    [USD, CAD]
    USD-CAD has remained firm through the session, topping at 1.2629, a five-session high, and continues to find support above 1.2600. Softer then expected December Canada wholesale figures were supportive, as have WTI crude prices, which are down nearly $1/bbl relative to Monday's high. Support comes in at the 50-day moving average of 1.2551.

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