The USD has pared its early session losses,...>

FOREX: The USD has pared its early session losses, after falling against its

major peers ex-JPY, while JPY has extended to session highs.

- There appeared to be a degree of USD supply heading in to the Tokyo fix, which

has since abated, aided by positive comments from US President Trump re: Trade,

while USDJPY has moved higher after Japan's former tax chief Sagawa stated that

Japanese PM Abe & his wife had no part in the Moritomo scandal.

- In terms of broader currency flow, CAD seems to be garnering inflows on hopes

of a NAFTA deal, hedge funds have seemingly got behind the NOK, while BofAML

suggest that the Brexit transition flows from both hedge funds and real money

put EURGBP at risk.

- The broader dollar index last trades around 89.12. The DXY is off of Monday's

lows, with support noted at the Feb 19 low of 88.960. Bulls now need a close

above 89.327 to gain breathing room and above 90.011 to ease bearish pressure

and shift focus back to 90.445.