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Dollar Downside Eyes Feb Lows for Greenback

FOREX

The greenback's been sold throughout European morning hours, prompting the USD index to narrow the gap with February lows printed earlier this week at 90.118. A break through here opens key support at 90.05 and would provide some major impetus for EUR/USD, GBP/USD and USD/JPY rates.

USD weakness this morning has buoyed GBP/USD above the $1.40 handle for the first time since April 2018, a move that's also seen USD/JPY show below the Y105.50 mark. European prelim PMI data has been mixed, with manufacturing generally faring better, but services lagging.

CNH saw some minor volatility on the back of further headlines suggesting China could ban rare earth technology exports if it deems necessary on national security grounds. USD/CNH initially rallied, touching 6.4553, before fading as markets deemed the news had little new information.

Focus Friday turns to Canadian retail sales and prelim February PMIs, existing home sales from the US. Central bank speakers include Fed's Barkin & Rosengren.

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