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Risk remained the key directional driver......>

FOREX
MNI (London)
FOREX: Risk remained the key directional driver through Asia and then into
Europe. The resignation of Gary Cohn from the Trump Administration after NY
closed, along with headlines suggesting US is contemplating invoking certain
tariffs on China, prompted a move back to risk aversion which saw Usd/Jpy drop
back to Y105.46, having seen a recovery high Tuesday of Y106.44 on N.Korea offer
of talks(risk-on). The pressure on the Usd lifted Eur/Usd to an extended high of
$1.2434. However, Europe saw rates settle with no new news appearing in this
session, Eur/Usd eased toward its earlier Asian low of $1.2404, Usd/Jpy edged to
Y105.80, before a dollar index seller emerged to take Eur/Usd back to $1.2426,
Usd/Jpy back toward the Y105.50 area. Traders aware that a large $1.67bn expiry
is due to roll off at the NY cut and could keep rate attracted. 
- Tariff sensitive currencies such as the CAD & MXN took a hit on Cohn's
resignation, as he is viewed as a globalist.
- Aud fell foul of the risk off mood, the currency shook off the softer than
expected GDP release, after RBA Gov. Lowe had suggested that possible outcome
due to exports. Lowe offered no fresh comments on the outlook for MonPol.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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