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Month/year-end flows remained in vogue........>

FOREX
FOREX: Month/year-end flows remained in vogue during Asia hours, with the USD
trading on the back foot, in line with the models that we have seen. That being
said, the DXY has edged away from worst levels, but the USD is still softer vs.
all of its G10 counterparts, with bears looking to the DXY's Dec 12 low.
- The PBoC's weekend decision to apply its LPR to existing floating rate loans
helped the Antipodeans in early FX trade, before the broader USD weakness took
hold, while a stronger PBoC fix helped USD/CNH lower.
- Elsewhere, a case of no news is good news and the downtick for the USD
supported cable, while EUR/USD had a look above $1.1200, before fading back
below the figure.
- USD/JPY tested trend support drawn off the Aug 26 low.
- Monday's docket is somewhat U.S.-centric, as the holiday feel remains well and
truly in swing. Chicago PMI, advance goods trade balance, Dallas Fed m'fing
index & pending home sales are all due out of the U.S.
- Also worth reminding that Japan will observe a market holiday Tuesday through
Friday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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