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Greenback on top as firm data underpins.......>

FOREX
FOREX: Greenback on top as firm data underpins
-USD rose above most others in G10 Tuesday as February ISM non-manufacturing PMI
and December new home sales both came in well above expectations. The USD index
briefly rose above the 97 handle for the first time since mid-February, allowing
bulls to adjust their targets up to the year's best levels of 97.368. The
wide-ranging USD strength lifted USD/JPY through the Y112 handle, topping out at
Y112.14, but momentum was clearly lacking to lift the pair further. The USD/JPY
RSI remains close to 'overbought' territory, keeping a lid on the pair for now.
-GBP underperformed for much of the session as Bloomberg reported that PM May's
government are not expecting any imminent breakthrough in talks between the PM's
top legal advisor Cox and EU negotiator Barnier. Nonetheless, the downside was
stemmed as BoE's Carney stated that the current market path for rates "may not
be high enough". GBP/USD trades either side of $1.3150 at writing.
-Australian GDP takes focus from here, with RBA governor Lowe and BoJ's Harada
also due. US ADP employment change, December trade balance and the Bank of
Canada rate decision are the highlights for the EU/US sessions.

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