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By XE Market Analysis May 1, 2014 2:18 pm
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    XE Market Analysis: Asia - May 01, 2014

    The dollar firmed marginally versus the European majors, and lost some ground to the yen in N.Y. trade on Thursday. Economic data wasn't overly constructive for sentiment, as jobless claims were higher than forecast, and construction spending missed the mark as well. A bright spot was an improved manufacturing ISM. Equities traded on either side of flat through the session, as Treasury yields slipped, despite upside-payrolls risk on Friday.

    [EUR, USD]
    EUR-USD was on the rise into the N.Y. open, after rebounding from session lows of 1.3774 into the EU CPI data, which missed the mark, but rising enough to take some pressure off the ECB. The euro opened near 1.3850, and made its way to intra day highs of 1.3776 after the weak U.S. growth data.

    [USD, JPY]
    USD-JPY did not like the downturn on Wall Street, nor the easier Treasury yields, and faded to 102.18, from over 102.35 after the ISM data. Support is seen into 102.00, and ahead of the U.S. jobs report on Friday, we suspect traders won't push too hard in either direction.

    [GBP, USD]
    In London, cable made a new-major trend peak of 1.6923 in the wake of the stellar manufacturing PMI data out of the U.K, though gains had run their course by the N.Y. open. The mildly firmer dollar tone saw sterling give back the 1.69 handle, easing to 1.6875 in light pre-U.S. jobs trade.

    [USD, CHF]
    EUR-CHF traded on either side of 1.2200 in light trade, as risk levels were fairly neutral. USD-CHF moved higher, with the dollar in general, though inside a well-worn range. The CHF will remain tied to general risk levels, though with the SNB on guard for EUR-CHF, downside will be limited.

    [USD, CAD]
    USD-CAD offers at 1.1000 capped the pairing at 1.0995 in early North American trade, though softer oil and gold prices, along with the BoC's concerns over the CAD's strength, should minimize downside going forward. We look for the pairing to consolidate, with sideways price action expected into Friday's U.S. jobs report.

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