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GBP & JPY show modest gains in otherwise......>

FOREX
FOREX: GBP & JPY show modest gains in otherwise quiet markets.
- The buoyant GBP tone spilled over into Europe and registered gains for the 4th
consecutive session. The early break of $1.4200 triggered renewed demand from
momentum type accounts through bullish pennant resistance ($1.4220) to $1.4223.
Soft UK Mfg/IP data dipped back under $1.4200, before stronger-than-expected
trade numbers countered.
- JPY was the standout performer in G10 against the USD as weight filtered
through via the crosses. Usd/Jpy moved back under Y107.00, before finding a base
at Y106.89. Eur/Jpy eased to Y132.19 but remained well supported via the
200-dma. Aud/Jpy & Cad/Jpy also touched respective lows.
- Eur/Chf short covering squeezed to multi-year highs of Chf1.1880, Eur/Usd
tracked the move to $1.2381.
- Commodity currencies failed to build on yesterday's strong gains and drifted
throughout the session. RBA Governor Lowe offered nothing out of the ordinary,
reiterating the RBA view that the next move in rates would likely be up.
- CPI & FOMC Minutes the main US highlights today.

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