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The USD has edged higher overnight. After a...>

FOREX
FOREX: The USD has edged higher overnight. After a knee jerk lower JPY crosses
have moved higher. The initial move came after the BoJ reduced the size of its
Rinban operations covering the 5-10 Year bucket by Y20bln. It is worth noting
this is a relatively small reduction, given that the BoJ raised the size of
purchases in this sector by Y40bln back on Feb 02 2018. USDJPY last at 109.15.
The JPY's reaction may give the BoJ more confidence to further reduce its
purchases, as it had been worried about any ensuing JPY app'n after such moves.
- Italy's 5SM/Lega coalition is set to be sworn in on Friday after a ministerial
rejig. Spanish PM Rajoy is expected to lose a confidence vote later today.
EURUSD last at 1.1680. Reports have suggested that UK Brexit Min Davis is
planning on giving Northern Ireland joint EU-UK status to alleviate the border
issue, the story was carried by a UK tabloid and couldn't prevent cable from
falling overnight. USDCAD is now flat after an early relief rally following
Thursday's losses. AUD & NZD were softer vs. USD.
- US NFP, EZ M'fing PMIs & ISM M'fing headline on Friday. EURUSD option expiries
dominate once again. 
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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