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By XE Market Analysis February 28, 2014 12:41 pm
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    XE Market Analysis: Asia - Feb 28, 2014

    Aside from USD-JPY, which rallied on firmer yields and better risk levels, the dollar was soft through the N.Y. session. Revised Q4 GDP was a tick under expectations, though Chicago ISM, Michigan sentiment, and pending home sales beat expectations. EUR-USD traversed a narrow range on either sidee of 1.3800, as USD-JPY rallied nearly 75 points from overnight lows, touching 102.25. USD-CAD fell back on better Canadian Q4 GDP, while the AUD recovered after testing 0.8925. USD-CHF moved briefly under 0.8800, as cable held the 1.67 handle.

    [EUR, USD]
    EUR-USD rallied sharply in London morning hours following firmer than expected EU CPI data. The pairing traded to 1.3813 highs into the N.Y. open, eventually peaking at 1.3923 at mid-morning. Despite decent U.S. data and firmer equities, month end related dollar selling kept the euro supported on either side of the 1.3800 mark.

    [USD, JPY]
    The JPY rose across the board overnight following a mostly above expectations set of Japanese data that may reduce expectations of the BoJ taking further easing measures this year. USD-JPY ebbed to a 10-day low of 101.55 in late Asia, though with improved risk appetite in the U.S. session, in higher equities and U.S. yields, USD-JPY was able to recover to 102.25.

    [GBP, USD]
    Cable fell back under 1.6700 into the N.Y. open, reportedly on U.K. based month-end related selling. The pairing quickly recovered in N.Y. trade however, moving to 1.6760 highs. Sterling trade remains very choppy overall, though appears to be benefitting from some safe-haven slows in lieu of the euro, and it's proximity to the Ukraine problems.

    [USD, CHF]
    EUR-CHF remained heavy after falling to 1.2157 Thursday on breaking below the Dec-17 cycle low of 1.2167, taking the cross to its lowest levels since April last year. The Swiss currency is following its usual outperforming pattern during periods of risk aversion, this time with market confidence shaken by the Ukraine situation and associated concern of broader geopolitical tensions.

    [USD, CAD]
    USD-CAD knee-jerked higher following the weaker Canadian December GDP print, though fell back quickly on the better Q4 growth number. From near 1.1120, the pairing popped to 1.1147 highs, before falling to intra day lows of 1.1062. A layer of bids seen at 1.1080-70 slowed the pairing's decline, and it settled into a 1.1070-80 band in light month-end trade.

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