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By XE Market Analysis November 29, 2018 2:39 pm
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    XE Market Analysis: Asia - Nov 29, 2018

    The Dollar was choppy in N.Y. trade on Thursday, though remained inside of a relatively narrow range through the session. Incoming income and spending data were stronger than expected, though jobless claims rose more than expected, and the pending home sales index fell more than forecast. EUR-USD ranged between 1.1402 and 1.1365, while USD-JPY found a footing under 113.20, and rallied to 113.50 highs. USD-CAD eased to 1.3257 as oil prices recovered from trend lows. Cable was steady in the upper 1.27s. The dollar later edged slightly higher after the FOMC minutes, which were not quite as dovish as Chair Powell was on Wednesday. USD-JPY moved to session highs over 113.50, as EUR dipped a few points to 1.1370.

    [EUR, USD]
    EUR-USD topped at 1.1402, a one-week high following the early U.S. data, since falling back to 1.1365 lows, before steadying under the 1.1400 level. Cooler Germany CPI released at the N.Y. open had little impact, and the market now appears to be in consolidation mode following Powell's dovish comments on Wednesday, which saw the Dollar slide broadly. EUR-USD resistance comes at last Friday's 1.1422 high.

    [USD, JPY]
    USD-JPY has steadied near the bottom of its recent trading range, idling on either side of 113.30 after touching 113.19 lows following the 8:30 EDT data round. Fed chief Powell smacked the Dollar broadly lower on Wednesday with his "just below" neutral interest rate talk, though selling from that event appears to have run its curse for now. Today's risk backdrop is relatively benign so far, with Wall Street opening just modestly underwater following yesterday's sharp rally. USD-JPY looks set to maintain the 113.00-113.50 range in the near term.

    [GBP, USD]
    Cable settled in the upper 1.2700s after failing to sustain gains above 1.2800 over the last day. The pair has been in a choppy range, with a slight overall downside bias, for nearly two weeks, and more of the same looks likely into the UK parliament vote on the Brexit deal, scheduled for December 11. While Prime Minister May and her allies are making an all-out effort to sell the deal, it still looks likely that it will be voted down in the House of Commons vote.

    [USD, CHF]
    EUR-CHF recovered from 2-month lows of 1.1261 in N.Y. on Wednesday, topping near 1.1350 in N.Y. on Thursday 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 dropped to 1.3257 early in the North American session, retreating from 1.3312 highs seen overnight, when WTI crude fell under the key $50 mark for the first time in over a year. Crude is back up to the $51 region now, allowing USD-CAD to pull back.

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