The greenback built on the strength seen......>

FOREX: The greenback built on the strength seen late on Friday in Asia, this

allowed the DXY to equal the year's highs seen on Jan1.

* Dollar demand spilled over into Europe, Usd/Jpy squeezed to fresh 2018 highs

of Y113.39, before fading. The pair eroded morning gains, continued heavy in NY

with a move back under Y113.00. Yen demand across the board extended the

corrective pullback to Y112.88, but later recovered to the Y113.05/10 area.

* CFTC data released on Friday showed Euro long positions at its highest on

record. The market was caught long, Eur/Usd stops were triggered on the break of

$1.2000. As recovery efforts remained shallow, further euro unwinds pressured to

lows of $1.1957. Despite strong Eurozone data the euro remained weak cross the

board against a basket of currencies, most notable Eur/Jpy which fell 120 pips

on the day to Y135.13.

* Cable recovered off early European lows ($1.3523), demand for the Ldn fix

squeezed to $1.3585, but failed to take out resistance from the Asia high

($1.3586). Eur/Gbp closely monitored and holds around the 200-dma.

* AUD weighed by weekend reports of a 20% drop in iron-ore, held $0.7827-73.