- Usd/Jpy initially held a narrow 40 pip......>

FOREX: - Usd/Jpy initially held a narrow 40 pip European morning range, but soon

encountered selling pressure into NY. As the DXY slipped back under 90, Usd/Jpy

moved through Y107.00 to Y106.65. Dip buying triggered fresh demand interest

through the WMR fix to briefly reclaim Y107.

- Eur/Usd traded either side of $1.23 after release of the ECB minutes which

discussed dropping the easing guidance but concluded it was too early. The

weaker USD theme squeezed to $1.2352 before meeting resistance ahead of

Tuesday's high ($1.2360).

- Soft UK GDP (1.4% y/y vs median 1.5%) pressured GBP to extended lows of

$1.3857 at the NY crossover. However, Gbp/Usd was quick to pare losses as broad

USD sales emerged, rate squeezed to extended highs of $1.3989 before fading.

- Firmer iron-ore/AUD yields supported Aud/Usd overnight, the buoyant tone

spilled over into NY with strong gains seen in oil and gold extending the

recovery to $0.7860.

- Usd/Cad spiked through the 200-dma to C$1.2755 after the release of soft

Retail Sales, but later gave back gains to hold around the C$1.2710/15 area.