Price action was again dictated by the USD....>

FOREX: Price action was again dictated by the USD in Asia. A rise in the 10-year

yield to 2.73% (Highest since April 2014) briefly lifted Usd/Jpy to Y109.20

before Japanese exporter supply pared gains.

-Short-term specs bailed, rate touched pullback lows of Y108.61 into Europe,

before dip buyers cushioned.

-Despite a strong Eur/Jpy recovery, Usd/Jpy failed to play catch up and largely

held Y108.62-72.

-The release of very weak Germany Saxony CPI (+1.4% Y/Y, -0.8% M/M) pressured

the euro as traders highlighted the 22% monthly decline in package holidays.

-Eur-Usd slipped to react lows of $1.2335 but soon recovered to the $1.2355/60

area. Short squeeze later extended to $1.2408. EZ GDP was released in-line,

sentiment surveys mixed.

-Cable initially pressured by a buoyant Eur/Gbp made a brief show under $1.4000,

reported model demand at $1.3980 held, before it tracked the Eur/Usd extended

recovery to $1.4080.

-Focus turns to President Trump's State of Union Address at 2100ET.