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By XE Market Analysis June 12, 2013 3:23 pm
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    XE Market Analysis: Asia - Jun 12, 2013

    The dollar fell again in N.Y. dealings on Wednesday, taking EUR-USD over 1.3350, and USD-JPY under 95.20. The USD index fell to levels last seen in mid-February. Soft risk appetite, weaker equities, and deleveraging all conspired against the greenback, though USD-JPY did recover back to 96.00 in thin afternoon trade. Cable touched 1.5700 highs, while USD-CHF moved briefly under 0.9175. There was no data on Wednesday to speak of, though things pick up in the U.S. on Thursday with retail sales, import prices, weekly jobless claims and business inventory data.

    [EUR, USD]
    EUR-USD looked a little heavy in early N.Y. trade, as it settled for a while under 1.3270. Wall Street opened higher, supportive of the dollar, though as stocks turned quickly negative, EUR-USD advanced steadily to session highs of 1.3360. Sellers emerged over 1.3350 after the London close, though euro pullback was limited to near 1.3330 in light trade.

    [USD, JPY]
    USD-JPY traders tracked Nikkei futures, which tumbled from 13,250 through 13,00 taking the dollar pairing with it in thin trade. During the Tokyo session there was speculation that the national pension fund (GPIF) may have had an interest to buy the index at 13,000, which supported the cash market in the last 30 minutes of trade. The pairing bounced from its initial move through stops under 96.00, to 95.57 lows, though fund offers at 96.00 stopped gains in their tracks. USD-JPY later touched 95.15 lows, after tripping stops at 95.50. Liquidity picked up a bit in the 30s, though was spotty in its move to lows. Bids picked up closer to the key 95.00 level, where barrier defense came into play. In addition, intra day short covering played a role into the figure. USD-JPY continued to trade in a manic fashion, quickly moving back over 96.00. Dealers reported thick bids into the 95.00 level, and the move back over 95.50 prompted intra day shorts to quickly run for cover.

    [GBP, USD]
    Cable headed back towards intra-day highs as interbank bids put a floor in place from 1.5645. Cable held on to firmer levels since it broke up through 1.5600 during Tuesday's N.Y. session, with longs still looking for a break above the 200-dma at 1.5701 today. The pairing touched 1.5700, though pulled back some in afternoon dealings. EUR-GBP supply related to a dividend payout was tipped amongst the European morning flows and so far the cross has not gained much in the way of support despite early talk that Vodafone could make a bid for Kabel Deutschland.

    [USD, CHF]
    An early move lower in the CHF was unsustained as equity markets lacked momentum. In Asia stocks fell, while European stocks posted modest gains intra-day. USD-CHF continued to slide after U.S. equities turned lower, basing under 0.9175 before recovering over 0.9200. EUR-CHF meanwhile, fell back toward 1.2255, after opening over 1.2325.

    [USD, CAD]
    USD-CAD touched intra day lows of 1.0155 in morning North American dealings, eyeing the May 16 low of 1.0150. The level provided good support, though 1.0100 will be targeted on a break below. Standing bids from 1.0160 prompted some intra day short covering, taking the pairing back over 1.0200 into the London close. With little in the way of data on tap, equities and commodity prices were the drivers. After opening higher, stocks stayed down, which supported USD-CAD to a degree. The pairing hovered under 1.0200 through the afternoon.

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