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Defensive feel dominated through the..........>

FOREX
FOREX: Defensive feel dominated through the Asia-Pac session, with resultant
hunt for safety gaining steam. The region digested the monetary policy decision
& accompanying rhetoric from the Fed. U.S. central bank forecast that interest
rates will remain close to zero through 2022, while Chair Powell said he sees a
"long road" to economic recovery. JPY rallied alongside USD & CHF, while USD/JPY
ebbed below the Y107.00 mark. Commodity FX were offered, AUD led losses. 
- Risk-off flows have accelerated as we are heading for the London session,
pushing USD/MXN & USD/ZAR above their respective yesterday's highs. 
- THB was the best performer in Asia, amid hopes that local economic recovery
will bring about desired effects. KRW took a hit from broader risk aversion,
even as local trade data for the first 10 days of Jun showed a rebound in
exports. HKD ticked a few pips away from the stronger end of its trading band,
with HKMA attributing the currency's strength to a continuing inflow of funds.
HKMA has been stepping in recently to prevent excessive HKD appreciation.
- U.S. initial jobless claims & PPI, Swedish CPI & Italian industrial output
headline today's data docket, with Riksbank's Jansson & Skingsley due to speak.

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