Growing expectations of looser Fed policy.....>

FOREX: Growing expectations of looser Fed policy set the tone for Asia-Pac

trade. USD was sold across the board in the wake of yesterday's dovish Fedspeak

spearheaded by Fed Chair Powell, whose congressional testimony involved several

references to downside risks, leaving a rate cut in July firmly on the table. A

25bps cut was later yet again backed by dovish FOMC voter Bullard, while minutes

from the last FOMC MonPol meeting revealed that the idea is gaining ground.

- Safe haven JPY and CHF were bid, with the yen taking the lead among the G10

even as regional equities gained poise. USD/JPY dived below Y108.00.

- The Aussie showed some brief weakness but recovered since. AUD/USD met support

at the $0.6953-50 zone, which hosts numerous technical levels, before bouncing.

- KRW topped the Asian FX pile, with USD/KRW dropping at the open in a belated

reaction to USD's sell-off, which overshadowed Korea's trade row with Japan.

- CPI data from the U.S., Sweden and EZ member states figure on today's economic

docket alongside speeches from several central bank members. Among others, Fed

Chair Powell will continue his testimony, BoE Gov Carney will speak after the

publication of the FSR and the ECB will release its Jun MonPol meeting minutes.