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By XE Market Analysis June 27, 2014 4:19 pm
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    XE Market Analysis: Asia - Jun 27, 2014

    The dollar was mostly softer in N.Y. trade on Friday, though once again, relatively narrow ranges were the norm. A slightly better than expected U. of Michigan sentiment outcome had little impact, and with the weekend and month-end approaching, most traders remained near the sidelines. EUR-USD opened near 1.3610, and made its way to 1.3647 highs by mid-afternoon. USD-JPY held 101.35, though managed only 101.43 highs. USD-CAD slowly drifted into 1.0660, ahead of 1.0650 support. Cable meanwhile, touched 1.7007 lows, though buyers into the figure resulted in a minor bounce back over 1.7020 into the close. Wall Street was mostly lower, while Treasury yields were steady to a bit firmer.

    [EUR, USD]
    EUR-USD opened the session near 1.3610, and slowly made its way over 1.3645 in afternoon dealings. The pairing's failure to again hold under 1.3600 this week prompted some pre-weekend short covering, though given divergent policy paths between the ECB and the Fed, we continue to look for lower euro levels in the coming weeks.

    [USD, JPY]
    A backdrop of lower stock markets helped underpin the yen, as per the usual correlation, and USD-JPY broke below recent lows, touching a one-month low at 101.31 in London. The 200-day moving average at 101.71 was breached on route. Japanese data were net supportive of the yen too, though losses were limited to 101.35 in N.Y., managing a high of just 101.43.

    [GBP, USD]
    Sterling was little affected by U.K. GDP, with final Q1 data confirming the 0.8% q/q initial estimates, though the y/y figure was revised lower. Cable later moved under 1.7010 in light N.Y. trade, though managed to reclaim the 1.7040 region into the close.

    [USD, CHF]
    EUR-CHF remains biased lower as the situation in Iraq enriches the franc's safe-haven premium. The cross touched a 1.2152 last week, a one-month low. The cycle low of 1.2104 and 1.2100 are key support levels, but so far have remain unchallenged. The cross moved over 1.2175 in N.Y., though remains under moderate geopolitical backed pressure.

    [USD, CAD]
    USD-CAD selling picked up on the move under 1.0680, sending the pairing to new trend lows of 1.0675 by late morning. The January low of 1.0653 is seen as strong support now, and standing bids were seen coming in from 1.0660. USD-CAD touched 1.0661 into the close.

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