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Session Recap: G20 statement, Japan headlines knock the Yen down

The Yen was the weaker currency across the board in Asian hours. The non-threatening G20 statement was an early catalyst that saw Yen sellers active in inter-bank trading, with then headlines from Japan's Prime Minister Mr. Abe on the possibilities to buy foreign bonds as an option by the next BoJ governor, giving all Yen crosses the excuse for a further boost. Late in Asia, the Yen managed to stall the fall, although just fractionally. The British Pound and the Australian Dollar had also a performance below average, yet the latter was able to fill its downgap. The Euro, meanwhile, has operated with little buying interest, with fundamentals / technicals still failing to communicate a reversal looms.

Main Headlines in Asia (in chronological order)

- Abe expected to announce his candidates for the new BOJ appointments this week

- G20 statement settles on generalities; approval to keep selling the Yen?

- EUR/USD, break of trendline sees scope for 1-2 cent decline - BBH

- Weekend CNBC – Australian Treasurer Swan says High $A a worry

- Morgan Stanley buys EUR/JPY

- USD/JPY Sell orders reported 94.00, 94.10 and 94.25/30

- USD/JPY building a 'complex' topping - FXA

- USD/JPY breaks 94.00; Abe talking down the Yen

- CFTC report presents two big positioning adjustments - TDS

Toshiro Muto leading candidate for BOJ governor post, Reuters says

- S&P maintains Japan rating at AA- with negative outlook

Forex: EUR/USD faces worsening technicals/fundametals

The G20 meeting turned out to be, as one would expect, uneventful on its false sense of being regarded as a potential currency shaker. The delivery of generalized statements prevailed as opposed to any aggressive rhetoric, mainly due to the diversity of self-interest policy views. Chances are that speculation about jawboning on currencies will now likely fade, with investors hopefully in search of other hopefully more meaningful drivers to set currency directions.
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Forex: EUR/USD bouncing off lows, around 1.3345/50

The single currency traded with an offered tone overnight, dipping to the area around 1.3320/25 after opening around 1.3350...
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