First half of Asia saw Usd consolidate as.....>

FOREX: First half of Asia saw Usd consolidate as the Dxy traded largely

sideways. However, in the second and into early Europe the noticeable theme was

dollar weakness. The move lower in the greenback was attributed to Fed Chair

Yellen's mildly dovish comments last night that she is not certain that low

inflation is transitory. Eur/Usd benefitted from the weakness in the greenback

as the pair made intra-day highs of $1.7773 and is hovering around these highs.

Traders also noted that there was some $/Won buying by the Bank of Korea, which

may have supported the pair higher. Again dollar weakness pushed Usd/Jpy lower

temporarily breaking support around Y112.02/00 before bouncing back and

currently trading slightly above at Y112.08. It is worth noting that there is a

very large Y112.00 ($1.4bn)option expiry for today's NY cut. Aussie traded

mainly directionless as dealers reported a continuation of light volumes. The

pair recently printed intra-day lows of $0.7556. Cable edged higher in much of

Asia and pared back some of the gains. Trading remains somewhat thin as markets

await for Chancellor Philip Hammond to deliver his Autumn budget speech.