USD retained a firm tone through Friday.......>

FOREX: USD retained a firm tone through Friday European morning trade as markets

head toward the weekend. The traditional high beta currencies are the under

performers for the week despite Thursday's attempt at a rebound, with the ZAR

down 2.31% against the USD on the week so far and the BRL falling 2.02%. The DXY

is currently up 1% for the week so far, with the dollar index appearing to

restore its traditional pattern of putting in a positive performance in the

month of May. UST 10-Yr yield firm and was seen keeping the US unit on the front

foot.

- Headline watch for NAFTA developments, Italy Government formation and Brexit. 

- Goto-bi day(Sunday) demand was seen earlier at the Tokyo fix for USD/JPY

allowed rate to post an extended high of Y111.01 but move met strong headwind

resistance above the figure. However, this solid resistance didn't put off

another push higher in Europe as rate touched Y111.04 but again met a strong

counter. Asian traders suggested watching Y111.20 for next leg higher.

- Canada Inflation and Retail Sales at 1230GMT provides the focus into the NY

session.