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USD/JPY bulls run into trouble - Despite......>

FOREX
FOREX: USD/JPY bulls run into trouble
- Despite favourable equity markets, USD/JPY bulls ran into some trouble shortly
following the US open as a volume spike in USD/JPY futures saw the pair
accelerate through a break of support to hit the lowest levels since early May.
While no headlines crossed to trigger such a move, some speculation circled that
Softbank's recent sale of T-Mobile shares could be relevant. USD/JPY losses led
greenback weakness across the board, which was comfortably the poorest performer
in G10.
- Growth proxy currencies were the strongest performers Tuesday, keeping NOK,
AUD and NZD at the top of the pile. AUD/USD gains saw the pair trim the gap with
the $0.70 handle - a break above here opens recovery highs at $0.7063. European
and US PMI data generally fared well, with May's sharp contraction across
services and manufacturing activity slowing - or even partially reversing.
- Focus Wednesday turns to German IFO numbers and speeches from ECB's Lane as
well as Fed's Evans and Bullard. Rate decisions are also due from the central
banks of New Zealand, Czech Republic and Thailand.

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