USD SLIDES OFF, ECB CUTS 25 BP

The USD is lower against most pairs this morning as cross-spreaders sold Yen overnight lifting the majors into stops and extending the weekly ranges. USD/JPY rallied on general Yen selling but remains the only USD pair higher on the day. Traders note that fears of a N. Korean missile launch or further military posturing by the N. Koreans is also creating a bit of flight-to-quality buying of USD/JPY; the rate finding stops on the advance over the 99.30 area. High prints in the rate at 99.92 as stops and aggressive buying were seen in the overnight session above the 200 day MA around 99.30; traders note that offers were from large names layered above the 99.50 area and the old high at 99.68. Analysts note if the rate closes back under the 200 day MA after clearing stops above the rally higher may have been a head-fake false breakout; offers were thick on the way higher some desks report adding fuel to the argument. GBP gained on Yen sales lifting into early stops above the 1.4520 area; the rate holding support at the 1.4450 area overnight suggesting more upside is due.