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By XE Market Analysis November 21, 2017 2:29 pm
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    XE Market Analysis: Asia - Nov 21, 2017

    The dollar was mostly sideways in N.Y. trade on Tuesday. with U.S. players winding activity down into Thursday's Thanksgiving holiday. EUR-USD was contained to a 1.1714 to 1.1751 trading band, while USD-JPY dipped early to 112.18 on reported Japanese selling, before settling near 112. 35. USD-CAD steadied under 1.2800 on firmer oil prices, while cable was stuck on either side of 1.3230.

    [EUR, USD]
    EUR-USD topped the N.Y. session at 1.1751, shy of the London top of 1.1757, which was 10-points under the 50-day moving average. The downside was limited to 1.1714, with no real attempt made to test the 1.1700 level. U.S. trade is likely to slow through the remainder of the week, with participants set to leave early on Wednesday, and many staying home Friday after the Thanksgiving holiday.

    [USD, JPY]
    USD-JPY bottomed at 112.18 earlier, and has since bounced back to 112.52, under opening levels of 112.60. The pullback came despite the sharp Wall Street rally, amid talk of Japanese account selling ahead of Monday's 112.71 high, and the 50-day moving average at 112.77. Exporters have reportedly turned to using technical levels as selling points of late, rather than more traditional even numbers such as 113.00, 114.00, etc.

    [GBP, USD]
    Sterling traded softer following a bigger than expected UK government borrowing figure and a mixed bag of BoE MPC speak during parliamentary testimony, the net takeaway of which is there seems a lack of urgency before another rate hike would be due. Cable ebbed under 1.3230, nearly 40 pips down on the intraday high. We would characterize Cable as remaining in a sideways oscillation centered around the 1.3200 level, which has been enduring for over six weeks.

    [USD, CHF]
    EUR-CHF consolidated Monday's losses, which came following news of the failed coalition effort in Germany, before rallying back to 1.1682 highs into the N.Y. open. The cross had posted a 34-month high at 1.1723 on Friday. With political uncertainties now prevailing in Germany, we expect EUR-CHF to trend sideways, with risks tilted to the downside for now. Key support is at 1.1542-45.

    [USD, CAD]
    USD-CAD pulled back from North American highs of 1.2823, which came following the soft Canada wholesale report. The pairing printed a nearly three-week top, and has since traded into 1.2749 lows. WTI crude edged up over $57/bbl, giving the CAD a boost, though with oil off its highs, USD-CAD has steadied above the lows.

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