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Dollar dominant as US/UK yield spread hits....>

FOREX
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. 

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