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By XE Market Analysis May 13, 2014 2:30 pm
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    XE Market Analysis: Asia - May 13, 2014

    N.Y. FX trade on Tuesday saw the dollar mostly higher, despite a retail sales miss, only slightly higher equities, and slightly lower Treasury yields. EUR-USD touched new trend lows of 1.3695, as USD-JPY faltered from recent highs of 102.35, though did manage to hold the 102 handle throughout the session. Cable edged into 1.6825 lows ahead of Wednesday's BoE inflation report, while USD-CAD found support under 1.0880, and later inched back over 1.0900.

    [EUR, USD]
    EUR-USD was reportedly supported into 1.3700 by Asian reserve managers. This buying interest has been noted into each big figure since 1.3900 into the ECB meeting last week. As has been the case, the euro had some marginal downside follow through after the London close, where these bids seemed to have been emanating from. The euro later moved to 1.3690 lows.

    [USD, JPY]
    USD-JPY slipped from session highs of 102.35 after the soft retail sales data, though ultimately held over 102.00, though sell-stops are reported at 101.90 now. The earlier the rally was reportedly stopped by Japanese exporters parked on the offer from 102.40. Wall Street stayed in positive territory through the morning, allowing USD-JPY to recover back to 102.30.

    [GBP, USD]
    Cable was pressured in London by EUR-GBP buying, and the downward trend remained in N.Y., as the dollar stayed generally firm. The market appeared to position itself slightly less long of sterling into Wednesday's BoE inflation report, and U.K employment data.

    [USD, CHF]
    EUR-CHF has again consolidated in the upper 1.21s after recovering from the mid-121s last week. Fresh EU sanctions on Russia, and softer risk taking appetite in N.Y. however, pushed the cross back under 1.2200.

    [USD, CAD]
    USD-CAD eased back under 1.0900 in the wake of the soft U.S. retail sales data, after topping out at 1.0926 in London trade. Support comes in at 1.0875, though the pairing managed a low of 1.0888 before reclaiming the 1.09 handle.

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