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G10 FX crosses have stuck to narrow ranges....>

FOREX
FOREX: G10 FX crosses have stuck to narrow ranges thus far. Some modest risk-off
flows have been observed on the back of a NYT report suggesting that the U.S. is
weighing limits on China's video surveillance company Hikvision. This has added
weight to the Antipodeans, already pressured after APRA said that it is
"considering applying additional capital requirements to several regulated
financial institutions."
- USD/JPY has round tripped from Y110.59 and last trades near unch. levels.
Japanese trade surplus has narrowed more than exp., but core machine orders
topped forecasts.
- Fed's Bullard spoke earlier in the session, noting that the December rate hike
from the FOMC might have "slightly overdone it," but it is premature to talk
about a cut.
- Focus today turns to UK inflation data, Canadian retail sales and the latest
FOMC meeting minutes. Comments from BoJ's Harada, ECB's Draghi, Visco & Praet,
Fed's Bullard, Wiliams and Bostic will also provide interest. The Riksbank will
publish its Financial Stability Report.

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