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By XE Market Analysis March 11, 2015 2:50 pm
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    XE Market Analysis: Asia - Mar 11, 2015

    Another day, another record high for the USD index, which ramped up 1.25% to just under the 100.00 mark. EUR-USD losses of course were the major driver, as that pairing traded into 1.0512 lows, from N.Y. session highs of 1.0628. USD-JPY was steady between 121.20 and 121.60, though EUR-JPY took a fresh tumble under 128.00. USD-CAD peaked at 1.2798, matching January's high water mark. There was no data to move markets, and Wall Street steadied, while yields eased some on a good 10-year auction.

    [EUR, USD]
    EUR-USD traded back over 1.0625, after posting fresh 12-year lows of 1.0560 in London. U.S. backed short covering was cited as the early driver, with the speed of the most recent euro dive prompting position paring. Offers were said to be returning from the 1.0640 region n, as selling into modest rallied continued. The pairing later touched new lows of 1.0512, with euro bears getting the upper hand since London cleared out for the day. The April 2003 low of 1.0559 was dispatched, with the March, 2003 low of 1.0502 now in the crosshairs. The market has been loath to pick a bottom, and it appears with each figure printed, the next one down becomes the near term target.

    [USD, JPY]
    USD-JPY held its own through the session, holding 121.20, though unable to take out the London high of 121.62. EUR-JPY was the real mover today, with the cross sliding to new low of 127.71, levels not seen since June of 2013. Trend support drawn from last April lows through to late January lows projects scope for a move to the 125.25 area. USD-JPY, meanwhile, has found a toehold around 121.00 after plumbing out a low of 120.85. Yesterday's Tokyo high at 122.03 was the best level in seven-and-a-half years.

    [GBP, USD]
    Cable stops were tripped at 1.4945, resulting in a push to 20-month lows of 1.4894. It appeared some of the pressure on cable was the result of a EUR-GBP bounce, which found buyers ahead of 0.7010, and has since surged to 0.7070 in a not-insignificant short covering rally.

    [USD, CHF]
    EUR-CHF's 1.0650 level has evolved into an anchor point for the cross over the last few days, despite fresh euro underperformance over this period. The Feb-18 high at 1.0810 and the 1.0500 level, which is the alleged "soft floor" of the SNB, look likely to mark the boundaries of a new trading range for EUR-CHF in the months ahead, though we think the risks are skewed for more euro losses as the ECB QE program gets under way, which will likely test the resolve of the SNB.

    [USD, CAD]
    USD-CAD found support on forays under 1.2700 early in the session, though capped at 1.2720 into the EIA pol inventory data. The pairing was on the run higher following the latest slip in oil prices, prompted by a larger crude stock build, rising eventually to 1.2798 matching January highs. A break there takes the pairing into levels last seen in 2009.

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