Market Analysis: Asia - Mar 09, 2018

The dollar rallied marginally after the better than expected February employment report, though
gains didn't last. The DXY briefly crossed above its 50-day moving average at 90.25, topping at
seven-session highs of 90.35, though quickly gave the level back, later bottoming at 90.00. After
basing at 1.2273, EUR-USD rallied to 1.2334 highs. USD-JPY slipped from 107.04 to 106.72, while
USD-CAD fell to 1.2815 lows from 1.2894 after a decent Canada jobs report, and a surge in
capacity utilization. Cable topped at 1.3889.

[EUR, USD]
EUR-USD bottomed at 1.2272 following the U.S. jobs report, coming from 1.2305 highs ahead of
the data. It was pretty much one-way up from there, with the pairing topping at .12334 late in the
morning session. EUR-US remains in a sideways pattern, settling around midway levels of a range
that's been seen since late January, which marks a consolidative phase after rallying out of sub-
1.1600 levels that were seen last November.

[USD, JPY]
USD-JPY held fairly steady since the post-jobs rally to seven-session highs of 107.04. The pairing
has since been stuck to a 106.72 to 106.96 trading range. Overnight gains of course, came on the
back of the Trump/Kim meeting agreement, which should continue to support the pairing going
forward (the meeting has not been scheduled yet, and could be as late as May). Risk-on conditions
this morning have put a floor under the pairing as well. USD-JPY is currently over its 20-day moving
average of 106.79, and a close over the level will be a positive technical development.

[GBP, USD]
Cable bottomed at 1.3813 in the aftermath of the solid U.S. employment report, before rallying to
1.3889 highs. The dollar overall gave back modest gains through the morning session. Ongoing
Brexit concerns should limit sterling dtrength going forward.

[USD, CHF]
EUR-CHF has been upwardly mobile over the last week, yesterday clocking a six-week high at
1.1741. The break higher has tracked a broader rebound in the common currency, with markets
finding some relief as the new political picture starts to emerge following the Italian election on
Sunday. While the results were messy, and brought Eurosceptic parties to the fore, the general
view is that neither the euro or the EU will face an existential crisis. The EUR-CHF cross, which
rallied some 10% from mid last year, has been emblematic of the euro's recovery over the last year,
with the franc unwinding latent safe haven premium as existential uncertainties under the Eurozone
and EU come off the boil. Former resistance is at 1.1563-65 now reverts as support.

[USD, CAD]
USD-CAD fell from 1.2885 to 1.2833 lows after the data. which saw Canada jobs rise less than
expected overall, and full time jobs fall. Capacity utilization meanwhile, rose more than expected,
and likely weighed on the pairing, as the economy moves toward full capacity. The pairing later
bottomed at 1.2815 before settling near 1.2850.