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Furtive risk-on has USD/JPY near bull.........>

FOREX
FOREX: Furtive risk-on has USD/JPY near bull trigger
- Generally higher equity markets across Asia and Europe have helped buoy
sentiment across G10 FX so far Wednesday, with USD/JPY rallying nicely toward
the bull trigger at January's 110.29 high. Suitably, high beta currencies are
trading well, with NOK, NZD and AUD at the top of the board. RBNZ Gov Orr
offered little new in his latest address, but the upbeat undertones in his
testimony may have helped NZD a little.
- Covid-19 yet again dominated overnight news flow. China's daily update showed
a slight moderation in case count growth, helping soothe sentiment somewhat.
- Better-than-expected UK inflation numbers are seen making new BoE governor
Bailey's first meeting on the job considerably easier, as the space to ease
policy is far more constrained while core CPI is rebounding. The data saw
GBP/USD recover nicely off the pre-data lows and the pair now sits broadly
unchanged ahead of the crossover.
- CPI from Canada and PPI from the US take focus going forward. Fed's Bostic,
Mester, Kashkari and Kaplan speak ahead of the FOMC minutes.

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