US Tsy yields lead the charge - A breakout....>

FOREX: US Tsy yields lead the charge

- A breakout in UST yields triggered renewed dollar demand across the board. The

10y spiked through 2.63% before topping out at 2.6879%, while gold eased $4

below $1320. USDJPY pared European morning losses with the recovery extending

towards Y111.00, a topside break brings the recent range high & 200-dma into

view at Y111.24/31.

- Sterling retained a buoyant tone with a no-deal Brexit nearly all but priced

out. GBPUSD touched multi-month highs of 1.3350, before a combination of post

WMR fixing sales & USD demand pared light gains. EURGBP extended the downtrend

to Gbp0.8529, while GBPJPY briefly traded above Y148 for the first time since

mid-November.

- USTR Lighthizer headlines that said China purchases alone are not enough for a

deal, pressured high beta FX. AUD & NZD underperformed across the session with

losses of 0.75%/0.73% respectively, USDCNH traded above Cnh6.69.

- EURSEK eased to fresh lows of Sek10.5269 following Riksbank's Skingsley

remarks to MNI that said the Krona fall is unjustified.