The firm USD tone spilled over into......>

DOLLAR-YEN: The firm USD tone spilled over into Asia on extended react to Fed

Chair Powell's hawkish view on inflation. Usd/Jpy touched Y107.53 but was quick

to pare gains after the BoJ surprised markets and reduced their bond buying in

the 25y sector from Y80bn to Y70bn. Slippage extended to Y107.00 in early Europe

and holds near the base of its daily range. Demand is reported to build at

Y106.50, stronger through Y106.10/00. Month-end bank models have also suggested

USD buying today. Looking ahead, focus turns to tonight's announcement with

regard to the BoJ's March bond buying plan and Rinban operations.

- On the US calendar US GDP will be published at 1330GMT. Fourth quarter GDP is

expected to be revised down to a 2.5% rate of growth, as stronger fixed

investment is offset by downward revisions to other components.

- The MNI Chicago PMI at 1445GMT is expected to decline further to a reading of

64.0 in February after dipping to a still-strong reading of 65.9 in January.

- At 1500GMT, the NAR pending home sales data will be released, with the DOE

weekly crude oil stocks expected at 1530GMT.