The JPY outperformed following the tweak to...>

FOREX: The JPY outperformed following the tweak to the BoJ's Rinban operations

and softer than expected Chinese official PMI numbers.

- Investment houses are cautioning against the idea that the latest tweak from

the BoJ signals policy normalisation, stressing that it is a technical adj. to

shape the curve. In January, when the BoJ last provided a tweak to its

super-long end purchases, it followed it up with a tweak to some of its short

dated purchases to steepen the yield curve. Focus will therefore fall on

tonight's announcment re: the BoJ's March bond buying plan and Rinban operations

over the coming days. 

- The AUD, NZD, EUR & GBP traded modestly lower vs. the USD, with GBP ignoring

the latest round of Brexit related headlines in the UK press.

- USDCAD edged higher after the Finance Ministry released the annual budget,

indicating that it has no plan to balance the budget anytime soon.

- As a reminder most banks have suggested that month end flows should be

supportive for the USD.