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Free AccessDollar dominant as US/UK yield spread hits....>
FOREX: Dollar dominant as US/UK yield spread hits widest in a generation
-After a particularly quiet Asia session (much of mainland Asia, alongside
mainland Europe, is closed today), the USD rallied throughout the European
morning, prompting the DXY to break above the 200-dma and turn positive for
2018. Initially, the USD got a lift after breaking below a touted barrier in
EUR/USD at 1.2050 before a poor set of UK manufacturing PMI numbers saw the
UK/US 10y yield spread widen to its highest level for decades.
-As a result, the USD is strongest among the majors and SEK & GBP the weakest.
With European markets closed volumes are particularly light, which may be
exacerbating some of the sharp moves this morning.
-Commodity-linked FX is performing well on higher energy prices after Israeli PM
Netanyahu's press conference yesterday and a somewhat positive RBA policy
statement overnight.
-Focus turns to US and Canadian data, with ISM Manufacturing numbers and
Canadian GDP for February. Elsewhere, Bank of Canada governor Poloz is due to
speak at 1930BST.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.