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By XE Market Analysis October 15, 2019 3:01 pm
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    XE Market Analysis: Asia - Oct 15, 2019

    The Dollar was mostly lower in N.Y. on Tuesday, led by gains in both Sterling and the Euro, which came following reports that an EU/U.K. Brexit deal may be close. Cable vaulted to near five-month highs just under 1.2800, while EUR-USD topped at 1.1045. USD-JPY rallied on another risk-on session, with trade talk hopes weighing on the risk-sensitive Yen. USD-CAD fell to 1.3197 lows, as oil prices rose. Bigger picture, the Dollar may come under some pressure in the coming sessions, especially if the Brexit issue is somehow solved, and positive news continues on the U.S./China trade front. The market will eye the mid-east however, with the Turkey/Syria issue in the cross hairs. A breakdown there, could see safe-haven flows into the USD resume.

    [EUR, USD]
    EUR-USD was again unable to take out Friday's three-week high of 1.1063, largely idling between its 50-day moving average at 1.1042 and 20-day moving average at 1.0980. The unwinding of safe-haven Dollar buying flows seen last week, as markets partially priced in trade talk movement, appear to have about run their course for now, and some consolidation is expected until fresh news becomes available. The pairing later rallied to near 1.1045 from 1.1000 on reports that a Brexit deal may be close. A breakthrough will likely see the Euro, and Pound trade higher.

    [USD, JPY]
    USD-JPY rallied to better than two-month highs of 108.89, adding to last week's gains, as U.S./China trade hopes remain elevated following Friday's "mini-deal" announcement. The resulting risk-on conditions saw the pairing rally from 108.15 lows seen into the open. Fresh hopes for a Brexit breakthrough have also supported the pairing. Japanese exporter offers are rumored from the 109.00 level, though solid resistance should be expected at 109.06, which marks the 200-day moving average.

    [GBP, USD]
    Cable rallied to near five-month highs of 1.2799 in N.Y. morning trade, following a Bloomberg report saying a Brexit deal between the EU and the U.K. may be in the works by the EU summit on Thursday. The EU negotiator said earlier that an agreement is possible but will be difficult and would have to be committed to legal text by the end of the day if there is to be any chance of a deal being reached by Thursday.

    [USD, CHF]
    EUR-CHF moved above 1.1000 mark in N.Y. after rallying to two-month highs of 1.1039 on Friday from Tuesday's post-close low of 1.0870. An improvement in risk appetite again helped lift the cross, following a Bloomberg report saying a Brexit deal between the EU and the U.K. may be in the works by the EU summit on Thursday.

    [USD, CAD]
    USD-CAD has retreated to 1.3197 lows, down from London highs of 1.3239. The modest move lower has come on the back of firmed up oil prices, and generally risk-on market conditions. WTI crude rallied to $53.80 highs, up from overnight lows of $52.39, while Wall Street is higher, driven by positive bank earnings reports. Friday's six-month USD-CAD low at 1.3171 is the next support level.

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