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By XE Market Analysis November 17, 2017 2:57 pm
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    XE Market Analysis: Asia - Nov 17, 2017

    The dollar attempted a modest rally after better U.S. housing starts data, though given the backdrop of White House Subpoenas and doubts over the ability of the GOP to pass tax reform, ultimately faded to near rlows of the week. Wall Street lost ground as gold rallied, leaving the risk backdrop very soggy to end the week. USD-JPY fell to one-month lows of 111.95, as EUR-USD again topped over the 1.1800 mark. USD-CAD rallied early on cooler Canada CPI, though oil prices firmed up through the session, tkaing the pairing back into 1.2760. Cable traded on either side of 1.3200 in very familiar ranges.

    [EUR, USD]
    EUR-USD printed N.Y. session highs of 1.1806 after the London close, after putting in a a1.1738 low in the aftermath of the stronger U.S. housing data. Dollar malaise has continued into the weekend, leaving the DXY near its lows of the week, as markets remain wary of D.C. investigations, and the potential for tax reform failure. EUR-USD looks set to close out the week under its 50-day moving average at 1.1776.

    [USD, JPY]
    USD-JPY touched a 111.96 low, a level last seen on October 16. The pairing traded through its 50-day moving average of 112.66 during Asian hours overnight, and is within sight of the 200-day moving average, currently at 111.77. Risk-off conditions have weighed, with sentiment soured by subpoenas for Trump campaign documents, and concerns the Senate will not pass tax reform.

    [GBP, USD]
    Cable fell back under 1.3170 early in N.Y. trade after more than reversing gains to 1.3260, continuing a choppy sideways trend that's been in play for six weeks now. The 1.3200 level approximately marks the midway point of this range. A series of daily lows that were seen in October between 1.3027 and 1.3039, mark a key support zone.

    [USD, CHF]
    EUR-CHF clocked a 34-month high at 1.1723, subsequently settling back under 1.1700. With the Eurozone gathering growth momentum, and seeming to have conquered existential political threats, we continue to anticipate an eventual return to 1.2000, which is the former trading floor of the SNB.

    [USD, CAD]
    USD-CAD rallied to 11-session highs of 1.2823 following the slightly cooler Canada CPI figures, taking the pairing up a full 100 points from overnight lows. The partial recovery of oil prices capped upside through the remainder of the session, with the pairing falling back into 1.2760 as WTI crude topped over $56.50.

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