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U.S. Tsy's semi-annual FX report published....>

FOREX
FOREX: U.S. Tsy's semi-annual FX report published in the NY/Asia crossover has
drawn some attention. Changes of note: China removed from the list of currency
manipulators (as anticipated by the press) & Switzerland added to the watchlist.
The removal of China's "manipulator" status & approaching finalisation of
phase-one deal with the U.S. have supported the yuan. USD/CNH had a look under
CNH6.8700 and touched a new multi-month low before bouncing off there.
- USD/JPY has jumped above Y110.00, with buying accelerating into the Tokyo fix.
That psychological barrier has been intact since May. Elsewhere in the G10, the
Antipodeans trade on a softer note, while the NOK fares relatively well.
- A rout in USD/Asia continues, with KRW leading gains in the space. USD/PHP
showed at its lowest levels since Jan 2018 as onshore PHP trading resumed after
Monday's closure caused by a volcanic eruption. USD/TWD & USD/IDR have also
extended losses to levels not seen since 2018.
- China's trade balance, U.S. CPI and Japanese Eco Watchers Survey are on the
radar today. Central bank speakers of note are Fed's George & Williams, as well
as ECB's Mersch, Villeroy & de Cos.

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