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By XE Market Analysis January 30, 2014 2:13 pm
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    XE Market Analysis: Asia - Jan 30, 2014

    The dollar was broadly higher in N.Y. trade on Thursday. Despite a small miss on GDP, and firmer claims data, risk appetite returned, taking Wall Street sharply higher following its rout earlier in the week. This supported the greenback versus most major currencies. The jury remains out on emerging markets, though activity today seemingly unwound some of the sharp moves seen earlier in the week. EUR-USD traded under 1.3550, while USD-JPY touched 102.90. Cable edged under 1.6500 again, while USD-CHF neared 0.9050.

    [EUR, USD]
    EUR-USD is neared the 1.3530 low posted on January 23, easing to 1.3544 lows. Buyers were reportedly lining up from 30 to 1.3500, while stops should be a factor under the figure, which would open the door for a move to 1.3400. Slightly cooler than consensus German CPI data likely weighed some on the euro, though the dollar was doing generally better on Thursday following the not-horrible U.S. GDP data, and some semblance of calm returning to the markets.

    [USD, JPY]
    USD-JPY made its way up to near 102.90, after finding good support around 102.00 overnight. The turn around on Wall Street was the major supportive factor through the session, though with yen bears being burned on moves over 103.00 this week, many will proceed with caution. Japanese exporters are noted sellers from the figure, while today's risk rally may be short lived, depending on emerging market events yet to unfold.

    [GBP, USD]
    Sterling has remained choppy of late, with cable moving between 1.6450 and 1.6650 for a week now. Cable did find support into the bottom of the range in London, returning to 1.6500 into the N.Y. open. Good resistance is marked at 1.6650, levels above here saw strong selling interest last Friday. Overall, we are mildly bearish on sterling, though more so against the EUR, CHF and JPY than the USD for as long as the backdrop of risk-off persists.

    [USD, CHF]
    EUR-CHF slid lower through the session on Wednesday, as safe-haven CHF buying was steady. The cross fell to lows of the year near 1.2213. Traders will be hesitant to push too far under 1.2200, as the SNB will be paying close attention, and indeed, the pairing recovered over 1.2250 in N.Y. on Thursday, with USD-CHF climbing back toward 0.9050, as risk appetite returned to a degree.

    [USD, CAD]
    USD-CAD backed away from the 1.1200 level, after trading to trend highs of 1.1199. Defense of option barriers at the figure was reported, which saw the pairing slip back under 1.1165. Support is now seen at 1.1150-40, with sell stops noted under 1.1120. The pairing touched 1.1151 lows in morning trade, before bouncing to 1.1185, and settling in near 1.1160.

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