Dollar has best day in weeks at the expense...>

FOREX: Dollar has best day in weeks at the expense of high-yielders

-The dollar looked seemingly unstoppable throughout the European and US trading

session to look to finish the day above the USD index's 100-dma for the first

time since December. The climbdown in tensions on both the Korean peninsula and

across the China-US trade table prompted a sharp sell-off in US bond markets and

prompt the US 10y yield to approach 3% for the first  time since 2014 (the high

print today was 2.9957%).

-The dollar's gain came at the expense of high yielding and emerging markets

with currencies from the PLN to the ZAR down over 1% against the USD.

-The strong dollar weighed on commodities and commodity currencies and as a

result NZD/USD looks on the cusp of closing below the 200-dma at $0.7184 for the

first time since January.

-The JPY was offered across the board despite equity markets looking less than

healthy: the Nikkei 225 closed lower by 0.3%, but the rise in US yields kept

USD/JPY bid to rise close 1% ahead of the US close.

-Tomorrow's focus turns to German IFO and US new home sales.