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By XE Market Analysis February 23, 2018 2:30 pm
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    XE Market Analysis: Asia - Feb 23, 2018

    The dollar traded mostly sideways in N.Y. on Friday. There was no data to move markets, though Wall Street posted gains, and yields moved a bit lower relative to Thursday's close. EUR-USD meandered inside a 1.2318 to 1.2286 band, while USD-JPY managed a narrow 106.90 to 106.52 range. USD-CAD dipped on hotter Canadian CPI data, bottoming at 1.2610 before bouncing. Cable ran into sellers over 1.4000, and bottomed at 1.3960.

    [EUR, USD]
    EUR-USD traded on either side of 1.2300 through the session, though has printed its fifth consecutive lower daily high, and has remained under its 20-day moving average since Tuesday. Support comes in at 1.2208, the February 9 low, then at 1.2180, representing the 50-day moving average.

    [USD, JPY]
    USD-JPY was quiet through the session, topping at 106.90 early on, and finding a floor at 109.52 into the London close. The Wall Street rally gave little support to the pairing, while a dip in U.S. yields added some pressure as well. Bigger picture, with the Fed on track to keep raising rates, and the BoJ firmly in easing mode, USD-JPY gains appear to be in the cards going forward.

    [GBP, USD]
    Cable lifted to a two-day high of 1.4005, extending the recovery from the 1.3856 low that was posted yesterday. The pound has also gained on the euro and yen, foraying into two-week high territory in the case against the former. Reports that the UK government ministers have reached a compromise on a blueprint for Britain's opening pitch to the EU with regard to a post-Brexit trading relationship, have lifted the pound.

    [USD, CHF]
    EUR-CHF has been in consolidation mode in the 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 slid to 1.2611 from 1.2700 following the hotter Canada CPI outcome. The pairing had been range bound overnight inside of a 1.2726 to 1.2682 trading band. USD-CAD later rebounded to 1.2699 highs, and remained under its 200-day moving average, which is at 1.2712.

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