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Forex Flash: Caught between a soft Yen and a hard RMB - BBH

FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that between the soft Yen and hard RMB, there is plenty activity in Asian currencies.

They begin by noting developments in the Philippines and Thailand recently bring the THB and PHP back to the forefront. The important news, they feel however, was that the Philippine Central Bank cut the special deposit rate by 50 bp where many expected a cut of only 25 bp. They see that this helps reduce the carry on PHP and is part of a suite of measures to contain currency strength. The more recent one was to relax FX trading limits in hope of fuelling some outflows. Separately, they note that Thai authorities are stepping up measures to prevent further THB appreciation, as they have warned. They write, “Rumours overnight about capital control measures were denied, but news that the central bank approved a plan to use its FX reserves to buy debt by state-owned companies abroad weighed on the THB. We think FX interventions and more regulatory measures are likely should THB continue to strengthen, though we doubt more draconian measures will be introduced.”

Forex: EUR/USD erases losses on European morning

Once the EUR/USD retested the daily highs at 1.3040 area on the release of EMU money supply data, failure at such resistance pulled the market down to the lower area of 1.30, reaching 1.3008, around the opening price.
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Forex Flash: USD/JPY made no attempt to take 100.00 despite NY USD optimism - OCBC Bank

Emmanuel Ng of OCBC Bank notes that despite the optimism towards the dollar in NY, he notes that USD/JPY made no attempt to breach the 100.00 ceiling, leaving him to conclude that near term prospects for the pair may be centered on the Japanese front.
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