USD holds firm, EUR through 1.2000, AUD &.....>

FOREX: USD holds firm, EUR through 1.2000, AUD & NZD Barriers Triggered

- The strong USD theme spilled over into NY, attributed to month-end flow

(yesterday) and general repositioning which pushed the USD higher and long

yields lower.

- EURUSD continued its descent taking out the $1.2000 barrier to print near

4-month lows of $1.1988. A minor pullback in the USD later squeezed to $1.2019,

before fading. The 200-dma at $1.2014 seen key on a closing basis.

- GBP retained a heavy tone after yet another poor set of data, soft Mfg PMI

numbers saw the UK-US 10y yield spread widen to its highest level for decades.

The downtrend continued with added weight from EURUSD to $1.3588 to represent a

near 800 pip fall in the last 10 trading sessions.

- The commodity space struggled with particular sharp falls in copper prices.

The stronger USD theme triggered barriers in both AUD & NZD to respective lows

of $0.7473/0.6991.

- Better-than-expected Canadian GDP data eased to C$1.2832, but the broader

based USD theme countered with a move back above C$1.29.