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*The Greenback traded stronger against all....>

FOREX
FOREX: *The Greenback traded stronger against all the majors, except the JPY as
China reportedly suspended the use of the counter-cyclical tool to cap USD/CNH
gains.
*The JPY outperformed G10 in Asia after the BOJ slowed its asset purchases.
USD/JPY touched react lows of Y112.50 but was quick to pare losses in early
Europe with gains extending to Y112.97. Failure to reclaim Y113.00 prompted
another wave of selling through Europe/NY to extended pullback lows of Y112.37,
despite the US 10y yld comfortably trading over 2.5% and 10-mth highs.
*USD strength added weight to both EUR/USD and GBP/USD, EUR/USD holds near the
base of its $1.1916-76 range. GBP/USD failed to build momentum above $1.3530 and
was held to a tight $1.3506-82 range.
*Overnight gains in the AUD following stronger Building Approvals data was
quickly eroded into Europe after the China news sparked a frenzy of dollar
buying. AUD/USD remained defensive held to a tight $0.7808-65 daily range.
*Focus tomorrow on UK Industrial (Exp 0.4% m/m) & Manufacturing Production data
(Exp 0.3% m/m) at 0930GMT for direction.

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