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Markets happy to sit and wait for US..........>

FOREX
FOREX: Markets happy to sit and wait for US inflation numbers
-NZD sits on top this morning, buoyed by a successful bond sale that drew large
lumps of demand from international investors. This marks the third consecutive
day of gains for the pair, which looks to be making a renewed test on the YTD
highs of $0.7437.
-JPY is on the back foot despite strengthening yesterday as leveraged funds
bought USD/JPY throughout the overnight session and markets look to defend
option-related positions near the Y107 handle. Focus remains on the potential
fallout from the political scandal brewing in Japan, with finance minister Aso
set to miss the upcoming G20 meeting in order to solidify government at home.
-GBP trades slightly softer ahead of the Chancellor's Budget at 1230GMT, despite
little policy change via spending cuts/boosts expected.
-All focus turns to US CPI figures at 1330GMT. MNI Analysts write CPI is
expected at +0.2% following an outsized 0.5% rise in Jan. Energy prices are set
to decline after Jan's 3.0% rebound. Deutsche Bank also highlight that USD/JPY
has fallen following US CPI for the last 13 consecutive releases.

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