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-Despite a rise in BOJ purchases in the 3-5...>

FOREX
FOREX: -Despite a rise in BOJ purchases in the 3-5 year sector by Y30bn, Usd-Jpy
failed to hold above Y109.00 overnight. The USD sold off following Trump's no
mention of strong dollar in his State of Union Speech and drifted to Y108.70.
-The soft USD theme initially spilled over into Europe, Usd-Jpy touched pullback
lows of Y108.60 before dip buyers cushioned falls.
-Disappointing headline and component CPI pressured Aud/Usd overnight to
$0.8047, but as USD sales emerged following Trump's speech, rate later recovered
to the $0.8080 area.
-A quiet morning in Europe saw Aud/Usd briefly make a show above $0.8100.
-The EUR encountered a fresh bid tone after strong French CPI data, Eur-Usd
triggered reported stops to $1.2463 but was quick to pare gains following the
soft Spanish CPI release. Headline EZ CPI came in above forecasts at 1.3% but
saw minimal react.
-Gbp/Usd tracked the early EUR move through $1.4200, touched $1.4213 before
mth-end related Eur/Gbp demand (possibly linked to the 1000GMT fix) pared gains.
FOMC provides the main event risk later at 1900GMT.

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