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By XE Market Analysis March 20, 2017 2:24 pm
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    XE Market Analysis: Asia - Mar 20, 2017

    The FX market was quiet in N.Y. on Monday, with major dollar pairings largely trading inside of narrow ranges. There was no data to drive prices, while many were likely distracted by the near session-long congressional grilling of FBI director Comey on Russia. EUR-USD managed a 1.0760 to 1.0739 range, while USD-JPY was stuck inside of 112.55 and 112.87. USD-CAD idles between 1.3340 and 1.33472, as cable bottomed at 1.2335 after printing three-week highs of 1.2435 in London.

    [EUR, USD]
    EUR-USD dipped into N.Y. session lows of 1.0740 after unable to make headway over 1.0760 from the open, leaving London's 1.0777 top and Friday's trend high of 1.0782 untested. Fedspeak returns in force this week, which should generally fortify the outlook that the Fed is in tightening mode, while the ECB continues to buy assets through its QE program. Euro selling into gains looks set to continue, with the 1.0800 level appearing to be a good level to be on the offe

    [USD, JPY]
    USD-JPY bottomed at 112.46 in London, before recovering to 112.89 highs into the N.Y. open. The uptick on Wall Street has sparked some buying interest most recently, though with four consecutive days of lower daily highs and lows in place, longs will remain wary. The 20- and 50-day moving averages have converged this morning, both currently at 113.65, with the 20-day poised to move above the 50-day. This occurrence would be a bullish development for the technically minded.

    [GBP, USD]
    Cable rallied to better than three-week highs in London, topping at 1.2435. The pairing drifted lower through the N.Y. session, perhaps as the news that the U.K. is set to start official Brexit talks by triggering Article 50 on March 29 brough attention back to the potential disruptions that Brexit could cause. Cable bottomed at 1.2335 after the London close.

    [USD, CHF]
    EUR-CHF again found support into its 20- and 50-day moving averages on Monday, reclaiming the 1.07 handle in light trade. SNB left policy on hold, as expected on Thursday. No surprises from the SNB, which kept official policy parameters unchanged and re-affirmed its threat to intervene on currency markets as it keeps a watchful eye on the "significantly overvalued" currency amid the multitude of political risks hitting Europe this year.

    [USD, CAD]
    USD-CAD printed intra day highs of 1.3372, on its way from 1.3305 lows seen in London. Oil prices were on session lows in morning trade, which was supportive of the pairing. The 20-day moving average, currently at 1.3332 provides support now, while Friday's 1.3377 high marks the first resistance level.

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