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Consolidation was the overriding theme........>

FOREX: Consolidation was the overriding theme during the Asia-Pacific session,
the dollar was broadly unchanged against its peers from yesterday's close in New
York. This spilled over into Europe, despite it being month-end traders reported
of light volumes across the board. Euro-dollar held near the base of its daily
range ahead of Eurozone CPI data. Soft core release (0.9%) pressed to $1.1625,
before firmer GDP headline and revisions countered. Cable reversed off early
highs of $1.3223, briefly made a show under $1.3200 on mth-end eur/stg demand,
but quickly faded to hold $1.3208/13. Following on from yesterday's reports that
Trump's tax reforms may be phased in over a 5 year period and the indictment of
three of his former team, dollar-yen continued heavy into Europe and moved
through the Asia low to Y112.96. Japanese bank demand supported off the low,
firmer UST yields aided the recovery to Y113.31. Aussie squeezed to early highs
of $0.7693, but quickly pared gains to $0.7669. Main data highlight today at
1345GMT from the US MNI Chicago PMI. The index is expected to slide back to a
reading of 59.9 in October after rising sharply to 65.2 in September. 

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