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By XE Market Analysis February 26, 2014 5:09 pm
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    XE Market Analysis: Asia - Feb 26, 2014

    The dollar firmed up broadly in N.Y. trade on Wednesday, taking EUR-USD under the 1.3700 mark for the first time in a week, and USD-JPY back over 102.60, after again finding support ahead of 102.00. Euro stops were tripped up at 1.3680, and subsequently, better U.S. housing data took the greenback higher. EUR-USD opened near 1.3730 and touched lows of 1.3662, as USD-JPY struggled early, dropping from 102.40 to 102.10, before bouncing to highs. Cable touched lows under 1.6625 after failing to breach 1.6700 in London, while USD-CAD reclaimed the 1.11 handle.

    [EUR, USD]
    EUR-USD slipped to session lows into the N.Y. open, with U.S. names reportedly the sellers of note. Support remained in front of 1.3700 initially, though dealers reported good stops building at 1.3680, just under last Thursday's 1.3685 lows. The pairing later touched 1.3662 lows after tripping aforementioned stops, with downside halted by reported bids at 1.3650. From there, recovery was very shallow, and a N.Y. close under 1.3700 could lead to further losses overnight.

    [USD, JPY]
    USD-JPY has made its way over 102.60, after taking a quick look at 102.10 lows earlier in the session. The pairing recovered following the better U.S. housing data, which prompted some decent short covering. In addition, firmer U.S. equities brought some dollar buyers into the mix. Yesterday's 102.62 highs may halt gains for now, though after that, resistance is noted at 102.70-80.

    [GBP, USD]
    Cable failed to hold the 1.67 handle in London trade, and was sold off through the N.Y. session, basing under 1.6625. The dollar rallied broadly through the morning, which kept pressure on sterling. As U.S. equities faded in afternoon trade however, cable bounced back over 1.6675.

    [USD, CHF]
    The CHF's fortunes will likely remained hooked up to risk levels for now, though for EUR-CHF, 1.2150-1.2250 is likely to hold up for quite some time. USD-CHF got caught up in knee jerk dollar buying, followed by a just as violent dollar sell-off, taking that pairing from 0.8855 to 0.8891 and back to 0.8860.

    [USD, CAD]
    USD-CAD based ahead of 1.1070 through the London session, though climbed back over 1.1140 in North American dealings. Light intra day stops were noted over the figure, though good two-way interest was now seen in effect at 1.1120-30. Monday's 1.1143 high marked resistance, with the pairing matching the level before settling under 1.1140.

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