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By XE Market Analysis November 28, 2018 3:38 pm
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    XE Market Analysis: Asia - Nov 28, 2018

    The Dollar was quiet in N.Y. morning trade on Wednesday, though was hammered lower after Fed Chairman Powell said U.S. rates were "just below" neutral from "a long way from" neutral, as he said in October. The DXY was pushed from 97.53 highs to 96.69 lows. EUR-USD rallied from near 1.1270 to highs over 1.1380, while USD-JPY printed 113.45 lows, down from 114.03 highs. Cable peaked at 1.2847. Incoming data included a lower than expected Q3 GDP revision, and softer new home sales.

    [EUR, USD]
    EUR-USD rallied to 1.1387 highs after printing a more than two-week low of 1.1267 earlier in the session. The move higher came as the Dollar was generally sold off on Powell comments, who said interest rates are "just below" neutral. Ahead of the comments, the EUR has been inside of a relatively narrow 1.1267 to 1.1292 N.Y. trading range.

    [USD, JPY]
    USD-JPY fell to 113.45 lows, after making better than two-week highs of 114.03 ahead of Powell's market-moving speech. As was noted earlier in the week, Japanese exporter offers were in place from the 114.00 mark, which significantly limited upside potential. Powell's rates are "just below" neutral comment however, ended up sinking the Dollar broadly.

    [GBP, USD]
    Cable settled in the upper upper 1.2700s in morning N.Y. trade, after lifting out of yesterday's two-week low at 1.2725. The Pound has found its feet after its post-weekend wobble. This is despite Chancellor Hammond saying that all versions of Brexit will leave the economy worse off. The EU and UK may have shook hands on a deal, but Brexit remains heavily clouded in uncertainty. One solace is the evident strong support among members of parliament -- outside the relatively small Eurosceptic Brexiteer cabal -- to avoid a no-deal crash-out Brexit scenario, which seems to be giving the pound buoyancy. Cable later spiked to highs over 1.2845 following dovish Powell words.

    [USD, CHF]
    EUR-CHF recovered from 2-month lows of 1.1261 in N.Y. on Wednesday, topping at 1.1317 as EUR-USD rallied following Powell's dovish speech Ongoing wrangling between Rome and Brussels about Italy's budget had weighed on the common currency lately, reviving the Franc as a safe-haven currency. There has also been signs of flagging economic growth momentum in the Eurozone. EUR-USD has support at 1.1300-05.

    [USD, CAD]
    USD-CAD rallied to fresh five-month highs of 1.3360, taking its cue from weaker oil prices. WTI crude bottomed at $50.62 following the EIA reported U.S. inventory build. The pairing continues to be driven largely by oil prices, and indeed, since the earlier high, the pairing has pulled back under 1.3340, as WTI crude reclaims the $51 handle. Later, USD-CAD slid 100 points to 1.3260, as Powell's dovish comments sank the Greenback broadly, allowing oil prices to rebound over $52.00.

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