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By XE Market Analysis May 12, 2014 1:29 pm
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    XE Market Analysis: Asia - May 12, 2014

    The dollar meandered inside of relatively narrow ranges in N.Y. trade on Monday, with EUR-USD consolidating last week's post-ECB losses, and idling in a 1.3754 to 1.3772 band throughout the day. USD-JPY found a footing near 101.90 early, and managed to take out the 102.00 mark on the back of a fairly strong Wall Street rally. Cable ran into sellers at 1.6900, later pulling back under 1.6870. There was nothing on the U.S. calendar to drive trade, so traders relied on yields and equities, which both rose, supportive of the greenback.

    [EUR, USD]
    EUR-USD inched up over 1.3770 from 1.3755 into the N.Y. open, though trade remained light. Following last week's ECB-induced losses, we look for a period of consolidation to set in. Offers are reportedly layered from 1.3780 to 1.3800 now, with selling into strength likely to be the theme of the week. The pairing eased back to 1.3755 in quiet afternoon dealings.

    [USD, JPY]
    USD-JPY got a lift from the strong Wall Street open, reclaiming the 102 handle for the first time since Asian hours. The pairing topped at 102.07 initially, though managed to hold over the figure through the session, touching a high of 102.16. A move over 102.20 (last Tuesday's high) will be needed to shift sentiment.

    [GBP, USD]
    EUR-GBP clocked a fresh low of 0.8155, which according to our chart is two pips below the Feb-17 low and making it a new 15-month low. Sterling continues to outperform the euro following last week's ECB meeting. Cable was repelled by the 1.6900 level, and eased back under 1.2870 on general dollar strength.

    [USD, CHF]
    EUR-CHF consolidated in the upper 1.21s after recovering from the mid-121s last week, which reflected a correction in the Swiss franc's safe haven premium following Putin's mollifying words of diplomacy with regard to Ukraine. Despite the disputed east Ukraine referendum over the weekend however, EUR-CHF traded up t o1.2218, perhaps as global equity markets rallied.

    [USD, CAD]
    USD-CAD was up testing 1.0900, after finding good support into 1.0875 a couple of times this morning. Corporate bids were reported into the lows, while U.S. fund accounts were noted sellers at 1.0900. Range trade was the rule through the afternoon. Buy stops are seen at 1.0920.

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