Dollar crunched as Treasury yields in.........>

FOREX: Dollar crunched as Treasury yields in freefall

- The sharp and dramatic fall and flattening in the US sovereign curve Friday

sapped any and all strength out of the USD index from the get-go, with the US

currency among the poorest performers in G10 despite the overall risk-off mood.

The sell-off in US bond markets became so severe that the Ultra bond triggered

circuit breaks on numerous occasions, highlighting the market fragility on the

latest virus-induced volatility.

- CAD was the sole currency to fall against the USD as oil markets faltered.

Brent and WTI benchmarks fell as much as 8% after OPEC+ failed to agree on a

deal to cut output and prop up prices. Oil prices hit a four year low on the

news.

- Haven FX gained, with USD/JPY edging below Y105 for the first time since last

year. The swift rejection of a move below there, however, could raise questions

of official involvement.

- UK industrial production, US inflation and prelim Uni. of Mich are the data

highlights next week. The ECB rate decision and UK budget are also due.