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By XE Market Analysis May 1, 2015 2:30 pm
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    XE Market Analysis: Asia - May 01, 2015

    The dollar traded broadly higher in N.Y. on Friday, though not due to incoming data, which wasn't horrible, but largely missed market forecasts. Treasury yields moved higher, supportive of the greenback, as was Wall Street's rally. After peaking at 1.1290, EUR-USD slid to session lows of 1.1175. USD-JPY rallied over its 50-day moving average, and posted nearly three week highs of 120.28.USD-CAD moved up sharply, trading over 1.2205 from 1.2090 levels at the open, while cable underperformed, touching 1.5115 lows, after peaking over 1.54 in London. The slide came on the back of soft U.K. PMI data. Overall, uncertainty over growth, yields, and the Fed rate outlook, could keep FX trade choppy in the week ahead.

    [EUR, USD]
    EUR-USD moved initially higher following the ISM miss, weaker construction spending, and the unchanged final April Michigan sentiment outcome. The pairing rallied briefly to new trend highs of 1.1290, though was pushed quickly back into 1.1240, reportedly on heavy selling interest into the 1.1300 mark. The dollar rally continued into the london close, taking EUR-USD under 1.1200 to 1.1185 lows. Support now comes in at 1.1160-50.

    [USD, JPY]
    USD-JPY rallied to levels last seen on April 13, peaking at 120.28. Offers were reportedly solid into 120.00 initially, though once the 120.09 level gave way, the April 23 high, the market reportedly turned more two-way. The fact the pairing held the 120 handle into the close was taken as a bullish sign.

    [GBP, USD]
    Sterling traded lower in the wake of UK data releases, specifically the big miss in the April Markit manufacturing PMI survey, taking cable from near 1.5400 to lows in N.Y. of 1.5115. The pound underperformed versus the euro as well, taking EUR-GBP to two-month highs over 0.7420. The May-7 UK election should be a consideration given outcome uncertainties and the fact that Cable lost about five big figures during the final run-in to the last election in 2010.

    [USD, CHF]
    EUR-CHF has settled in the mid 1.04s after making a one-month high at 1.0508 earlier in the week. This came after the SNB last week expanded the number of groups subject to negative rates on deposits at the central bank, though the latest gain has been a natural euro rally. The central bank said at its March policy review that the franc is "significantly overvalued," and would "remain active in the foreign exchange market, as necessary." SNB Chairman Jordan said last Friday that "we will remain active in the foreign exchange market as necessary in order to influence monetary conditions."

    [USD, CAD]
    USD-CAD ran up to 1.2149 highs early in the session, over the 10-day moving average, and levels last seen on Monday. The move came as WTI crude slipped under the $59 mark, from just shy of $60 earlier in the session, and as gold futures fell to more than one-month lows of $1,169. Stops were tripped over yesterday's 1.2132 highs. The pairing later peaked at 1.2205, as oil prices fell to $58.30 lows.

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