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The Jpy weakened overnight after the BoJ......>

FOREX
FOREX: The Jpy weakened overnight after the BoJ sent another dovish signal, the
bank increased 5-10y purchases by Y40bn and conducted a fixed rate unlimited
operation. Usd/Jpy squeezed to react highs of Y109.66, before Japanese exporter
supply countered. The dip attracted fresh demand interest, firmer UST yields
aided the recovery to hold around the Y109.65/70 area.
-The buoyant tone spilled over into Europe, Usd/Jpy extended gains to Y109.89
before fading.
-Eur/Usd remained elevated via the crosses, particularly Eur/Jpy which extended
to multi-year highs of Y137.40. Profit take sellers later emerged to settle in
narrow range trade.
-Eur/Gbp demand capped cable gains, the release of soft UK Construction PMI
(50.2 vs exp 52.0) added fresh weight to $1.4208. Expect support at $1.4200.
-Weaker Aud/US yield spreads continued to pressure the AUD, slippage through
$0.8000 extended to $0.7982.
-US Non-Farm Payrolls the highlight at 1330GMT with main attention on the AHE
component for direction.

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