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The weaker dollar theme amid softer US........>

FOREX
FOREX: The weaker dollar theme amid softer US inflation data and a Fed hike,
that was deemed on the dovish side, mostly carried over to the Asia-Pacific
session. Aussie-dollar outperformed, very strong local jobs data (61k vs MNI
median 17k) saw the pair vault higher from $0.7630 to $0.7675. Consolidation
remained the theme into Europe, before broad-based dollar demand linked to
firming UST yields weighed. Aud started to chew into Asia gains with a move to
$0.7655. Traders extended react to the jobs data noted the pace of gains are
unsustainable with low wage growth and inflation. Eur/usd moved through the Asia
low to $1.1811 but was quick to pare losses after strong mfg PMI readings across
Europe. The rate touched $1.1838 but with lack of follow through faded. Cable
recovered off early European lows of $1.3417 and held firm ahead of UK Retail
Sales data. Much stronger-than-expected release on headline and components
lifted to $1.3466, before light profit take sales emerged off the high. The
cross made a show back under Gbp0.8800 to print react lows of Gbp0.8781. Firmer
UST yields supported Usd/Jpy and holds near the peak of its Y112.57-88 morning
range. Eur/Jpy lacked direction with trade confined to Y133.13-48.

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