After initially slipping in the early Asia....>

FOREX: After initially slipping in the early Asia session, U.S. traders were

happy to bid up the JPY against all others, despite the rise in U.S. Tsy yields,

with 10-Year yields closing just above 3.00%. The looming threat of a 25% tariff

(prev. 10%) on $200bn worth of U.S.-bound Chinese goods helped sour sentiment.

USD/JPY bears look for a close below the Y110.63 50-DMA to confirm another leg

lower.

- The USD barely blinked as the FOMC held the fed funds rate target steady, in a

unanimous decision, with very few notable changes to the overall statement,

outside of the upgrade in language re: economic activity, to strong from solid.

- AUD & NZD underperformed from the off, taking the CNH's leg lower as a cue.

Both remain well within 2% of the year's lows against the USD.

- Attention turns to Thursday's BoE rate decision, where markets eye a 25bp rate

hike and the publication of r*, the Bank's estimated equilibrium real interest

rate. Elsewhere comments from BOJ's Amamiya & U.S. durable goods headline.