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-DXY shot higher this morning on the..........>

FOREX
FOREX: -DXY shot higher this morning on the report, "*CHINA IS SAID TO OFFER
PATH TO ELIMINATE U.S. TRADE IMBALANCE"-bbg. However, much of the strength is
stemming from USDJPY which broke to a new, post-flash crash, high of 109.89.
Rate extends the day's gains, placing EUR/USD under further pressure touching
lows of 1.1352, and helping lift USD/JPY closer to the best levels of the year.
-The release of much stronger-than-expected Canada CPI data triggered CAD demand
across the board. Lower gas prices were offset by higher prices for various
services such as airfares, which saw USDCAD touch react lows of 1.3233. China
trade news caused a spike in oil, which led to a climb in USDCAD. Oil made new
session highs late into the US session causing USDCAD to climb back to 1.3274
-GBPUSD holds below the 100-dma of 1.2890, currently at 1.2876 prior to the US
close. Bears target a weekly close below the 100-dma at 1.2891, a break opens
cloud top support at 1.2868, ahead of the Jan 16 low at 1.2825.

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