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Currencies don't trust the equity.............>

FOREX
FOREX: Currencies don't trust the equity bounceback... yet
-After a volatile session Thursday, equity markets are once again in the green
in early Europe, with mainland indices up well over 1% apiece. These market
movements, however, run against currencies so far today, with JPY and CHF on the
front foot and commodity currencies still looking fragile.
-USD/JPY eyes the Dec26 lows of Y110.14 as the next level of support with bears
already taking out Y110.50 in the opening hours of the European trading day.
-GBP/USD's modest Asia-Pacific session recovery was easily erased by
mid-morning, with yesterday's lows of $1.2616 now the target on little newsflow.
GBP sits near the bottom of the G10 FX pile on little news, with ministers still
off for the Christmas break.
-EUR didn't enjoy a slowdown in Hesse and Bavarian regional German CPI, but
losses were limited as market turns attention to the national figure expected at
0.3% m/m and 1.9 y/y at 1300GMT.
-Outside of German inflation data, US MNI Chicago PMI is due at 1445GMT, with
pending home sales following. No central bank speak is due until the new year.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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