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By XE Market Analysis November 27, 2017 3:13 pm
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    XE Market Analysis: Asia - Nov 27, 2017

    The dollar was mostly firmer in N.Y. trade on Monday, supported by better housing data, and hopes for a U.S. tax reform package, as the Sentate pushes to pass its version this week. EUR-USD eased back to 1.1898 lows after printing new 2-month highs of 1.1961 early in the session. USD-JPY was on the rise early, thugh was later dented by reports from Japan indicating N. Korea ICBM activity may be underway. USD-CAD firmed as WTI crude gave back some recent gains, while cable ebbed under 1.3320 after printing near two-month highs of 1.3383.

    [EUR, USD]
    EUR-USD pulled back from two-month highs of 1.1961 seen early in the N.Y. session, bottoming at 1.1898. The pair had gained over 1.3% over the last week, reflecting a run of encouraging data out of the Eurozone, along with signs that a coalition government has a chance of forming in Germany. Solid U.S. housing data today, appeared to have prompted some profit taking, though downside will likely be limited until the U.S. senate can pass its version of tax reform, and reconcile it with the House version.

    [USD, JPY]
    USD-JPY slid back to 110.89 low after topping early in the N.Y. session at 111.25. Reports that Japan reportedly received a signal interpreted as North Korea preparing for an ICBM launch appeared to be behind the drop. Gold futures moved off their lows as well, though remained under session highs of $1,298.73. USD-JPY later edged back over 111.00.

    [GBP, USD]
    The pound drifted off a new two-month high versus the dollar at 1.3383, which was largely a product of a weaker dollar as markets adjusted to a less certain pace of Fed tightening ahead, along with fiscal policy uncertainties. The price action marks a break of the sideways range that's been in play since early October, though market gossip of good selling interest into 1.3400 seems to have encouraged some squaring out by shorter-term focused speculative players.

    [USD, CHF]
    EUR-CHF matched the 1.1723 trend high seen on November 17 as concerns over fresh German elections were allayed by reports that a coalition government is still in the cards. . General euro strength was the latest driver, as EUR-USD topped the 1.1960 mark.

    [USD, CAD]
    USD-CAD was lifted to 1.2769 highs from North American lows of 1.2681, as WTI crude prices fell to four-session lows of $57.56. Profit taking in the crude market has been reported ahead of Thursday's OPEC meeting in Vienna. In addition, widened yields spreads in favor of the USD have provided some support. The 20-day moving average, currently at 1.2760 will likely provide a fulcrum for the time being.

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