PBOC RAISES RESERVE REQUIREMENTS by 0.5%; This is weighing on risk appetite and reversing some of the overnight losses seen in USD and JPY. 1 Day after those aggressively strong bank loan figures, the PBOC pulls a hit&run, further tightening monetary policy before going away on holiday for the Chinese New Year. ALL RISK ASSETS DROPPING ACROSS THE BOARD TO THE BENEFIT OF THE USD AND JPY. WE BROKE THSI NEWS on twitter the SECOND IT HAPPENED warning of impact on FX & commodities. Failure for US retail sales to surprise on the upside (such as Snow-related)could weigh on markets and further boost USD--EURUSD eyes 1.3480, CADJPY double top at 86, paving the way for 84.55.