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Respective monetary policy decisions from.....>

FOREX
FOREX: Respective monetary policy decisions from the Fed & BoC kept USD & CAD on
the back foot, as Asian markets picked up on yesterday's reaction moves. USD/CNH
dropped despite a slew of worse than exp. off'l PMI readings out of China.
- The Antipodeans were bought. NZD was on the lead after improvements were seen
in local building permits & biz. confidence, while Westpac dropped their
expectation of a 25bps OCR reduction in Nov, calling for a Feb cut instead.
- The BoJ stood pat on policy, but tweaked language around its forward guidance
(as anticipated in an earlier Nikkei report) & now promises to keep rates low
"as long as it is necessary." JPY showed very muted reaction.
- In South Korea, a beat in industrial output, the largest fall in chip
inventories in two years, and a strong Samsung earnings report put a bid into
KRW, rendering it the best performer in Asian FX space. Augmented by USD
weakness, these factors dragged USD/KRW to fresh multi-month lows.
- A busy day ahead, data docket includes German retail sales, EZ & Canadian
GDPs, EZ & French CPIs, as well as U.S. personal income/spending & MNI Chicago
PMI. BoJ Gov Kuroda will hold a presser, ECB's de Guindos also set to speak.

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