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Favourable outlook for US-China trade kept....>

FOREX
FOREX: Favourable outlook for US-China trade kept risk appetite on the front
foot through Tuesday trade, with the USD a major beneficiary, helped along by
the rise in UST yields. US data continued to support this USD recovery,
following release of US Trade and Non-Mfg data. EUR/USD saw a high of $1.1140 in
Europe then drifted through the balance of the day to a post fix low of
$1.1064(38.2% 1.0979-1.1179). USD/JPY extended its recent recovery to Y109.22
though so far holds off a retest of its Oct30 high of Y109.29. Cable made an
eventual break above $1.2900, traded to $1.2917 ahead of NY before it was pulled
lower by general USD strength, holding below its reported $1.2900 strike expiry
at the NY cut. Rate eventually tracked EUR/USD slippage, as EUR/GBP again met
support below Gbp0.8600. Commodity currencies, which had performed well earlier
in day, succumbed to big dollar pressure and pared earlier gains near close.
- Wednesday brings Germany Factory Orders at 0700GMT, EZ Svcs PMI's from
0815GMT, EZ Retail Sales 1000GMT. US Non-farm productivity, Canada Ivey PMI.
Several EU speakers at Forum on Banking supervision through the day. US Evans,
Williams and Harker also due.

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