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By XE Market Analysis June 10, 2014 3:00 pm
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    XE Market Analysis: Asia - Jun 10, 2014

    FX trade was very light in N.Y. on Tuesday, keeping EUR-USD inside a 1.3539 to 1.3557 band through the entire session. USD-JPY meanwhile, was confined to 102.22 to 102.41. Aside from U.S. wholesale data, there was nothing on the calendar to drive prices, as equities moved moderately lower, and Treasury yields a bit higher. Elsewhere, USD-CAD found support over 1.0900 as sterling crept toward 1.5750, after failing to hold the 1.68 handle in London. The U.S. calendar is again light on Wednesday, though EU CPI data, and U.K. employment figures may stir things up into the N.Y. open.

    [EUR, USD]
    EUR-USD was stuck inside a 1.3539 to 1.3557 trading range since the N.Y. open, as a virtually empty calendar, and near sideways equities gave traders little to go on. Talk of European banks switching euro reserves to dollars made the rounds on Tuesday, a yield advantage being the rationale, and overall we remain euro bearish. We expect to see lower daily lows and highs to continue this week, with an eventual test of the 2014 low of 1.3478.

    [USD, JPY]
    USD-JPY rallied marginally on the better U.S. wholesale data, though overall was lightly traded. The pairing based ar 102.22 into the data, and later managed 102.41 highs. Sellers are from 102.60 now, with heavier offers noted from 102.80. On the other side of the market, bids are firmly in place into 102.00.

    [GBP, USD]
    Sterling rose in London on stronger than expected U.K. production data, with Cable recovering the 1.68 handle after earlier faltering amid EUR-USD's drop. The pound gave back the 1.68 level into the N.Y. open, and spent most of the session easing down under 1.6750. Wednesday brings U.K. employment data.

    [USD, CHF]
    EUR-CHF found a footing after making a one-month low of 1.2166 last week, though still holds below 1.2200. The break of a former uptrend channel support line at 1.2190 opened the way to the mid-1.21s. The cycle low of 1.2104 and 1.2100 are key support levels, but so far have remain unchallenged.

    [USD, CAD]
    USD-CAD was again steady on Tuesday, finding support into 1.0900 through the North American session, after touching 1.0891 lows in London. Gains were limited to 1.0921 however, with range trade mentality continuing to dominate. The risk backdrop was slightly CAD negative, though solid offers are reportedly in place from 1.0940.

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