Dull day in FX despite early USD strength.....>

FOREX: Dull day in FX despite early USD strength as greenback looks to end the

day mixed

-USD gained across Asia and early Europe, underpinned by the rise to Y109.20 in

USD/JPY. Exporter selling pushed the pair back below Y109, a level not regained

by the close of play as US equities suffered for a second consecutive session.

-GBP the main beneficiary, rising against all other G10, as leaked Brexit impact

reports raised speculation of a split cabinet and a softer Brexit. Leveraged

funds were said to be behind the recovery back above $1.4150 in GBP/USD. 

-EUR/USD failed to cement gains above $1.2450 and remains on the backfoot ahead

of the Asian session with poor German CPI figures hurting any recovery.

-AUD sagged, the worst performer in G10, as commodities fell sharply (WTI -1.5%,

precious and base metals mostly lower) bringing the pullback from the year's

highs to 0.7%.

-Traders look ahead to Trump's State of the Union address at 0200GMT/2100EST,

with focus on any comments on the dollar, trade conflicts or infrastructure

plans.