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By XE Market Analysis July 10, 2013 3:08 pm
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    XE Market Analysis: Asia - Jul 10, 2013

    The dollar was mixed in N.Y. on Wednesday morning, though ahead of risk events, activity was quite light. Traders largely remained sidelined into the FOMC minutes release, and a speech on the economy from Fed chairman Bernanke after the close. Before the minutes, EUR-USD managed 1.2865 highs, from lows near 1.2810 at the open. USD-JPY meanwhile, tested the 100.00 mark, though found some bids in front of the figure, before moving back to 100.40. The FOMC minutes resulted in a weaker USD performance, as the Fed removed some certainty over a September taper. Stocks rallied, while Treasury yields eased. EUR-USD popped to session highs over 1.2945, while USD-JPY traded briefly under 99.55. Both pairings moved nearly 100 points from pre-minutes levels.

    [EUR, USD]
    EUR-USD opened near 1.2910, and made its way over 1.2950, where gains ran out of steam, as the market ran into a band of European selling interest over the level. The pairing eased back to 1.2835, though ahead of FOMC minutes and Bernanke, there was little appetite to push either side too hard. The pairing spiked up 100 points to 1.2950 after the FOMC minutes, where a September taper, which was priced in last week, apparently was partially priced out today.

    [USD, JPY]
    USD-JPY was slowly on the rise in morning trade, since the final shaking out of weak longs in London. The pairing found itself back near 100.50 after finding a floor at 99.78 early on. The pairing plunged to 99.55 after the FOMC minutes, in concert with softer yields, amid prospects of no September Fed taper. The BoJ's statement on monetary policy, due overnight, is expected to reveal no change in policy alongside a reiteration of its commitment to boosting growth and inflation via aggressive accommodation.

    [GBP, USD]
    Cable idled along in a narrow range through the morning session, moving off the 14800 region to settle in at 1.4830-50. The pairing rallied over 1.4890 from near 1.4830 after the FOMC minutes, though with sterling remaining in sell-the-rally mode, bears took quick advantage, and pushed cable back to 1.4825 in thin N.Y. dealings.

    [USD, CHF]
    EUR-CHF made gradual upside progress. After 1.2400 held in the European morning it edged up through 1.2450 N.Y. Weak shorts turned positions around 1.2430 and a USD-CHF rise out of 0.9685 to 0.9715 carried it back to 1.2450. On the whole, CHF is still consolidating recent losses, but the lack of concrete gains suggests it could extend recent moves. The cross slipped under 1.2410 after the FOMC minutes, though quickly recovered back over 1.2440. USD-CHF meanwhile, dipped under 0.9600, before bouncing back over 0.9660.

    [USD, CAD]
    USD-CAD took a quick look under 1.0500 in early North American trade, though domestic buyers quickly stepped in. The pair touched 1.0495 after peaking at 1.0540 in Asia, before moving over 1.0525. The economic calendar was light on both sides of the border this morning, and activity was muted ahead of FOMC minutes. Broad dollar selling took USD-CAD to 1.0450 lows after the minutes, though it managed to recover back to 1.0500 into the close.

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