The DXY has edged higher, as USD lodged.......>

FOREX: The DXY has edged higher, as USD lodged minor gains vs. JPY, AUD & NZD.

- USDJPY moved higher despite the downtick in regional equity markets, with the

pair trading at familiar levels ahead of tomorrow's FOMC decision. Large USDJPY

option expiries at 106.00 & 107.00 for the Wednesday cut could set the rough

battle lines for now. The early part of the session saw a Japanese MoF official

suggest that the recent bout of JPY appreciation had decoupled with

fundamentals, although the jawboning received little attention.

- AUD has edged lower despite a slightly more upbeat view given by the RBA in

the minutes from its latest monetary policy meeting. Early dealing saw the

Aussie garner support as AUDJPY bounced from support, but both the Aussie & its

Antipodean cousin, the kiwi, have struggled to generate any notable upward

momentum.

- EURUSD has consolidated Monday's ECB sources inspired gains, with EURGBP last

trading at 1.2340.

- USDCAD last trades at 1.3080, following yesterday's NAFTA related respite.

- The major risk event on Tuesday comes in the form of the UK inflation release.