A sharp retracement in the DXY yesterday,....>

DOLLAR: A sharp retracement in the DXY yesterday, extended through early Asia

before basing ahead of the 96 level. The index squeezed to 96.17 and holds firm

at the European crossover. Downside focus turns to the 96.00/10 area which holds

key support from the 100-dma & a series of previous lows. A break here opens

95.75 which represents the 50% retracement of 95.02-96.48, ahead of the Jan 15

low & 76.4% fibo at 95.46/36. Bulls need to recover 96.50, before challenging

the ytd high at 96.95. Gold holds toward the lower end of its $1281.10-1284.88

range trading either side of broken channel top resistance/support. WTI & Brent

both consolidated in narrow range trade. The ECB rate meeting is scheduled at

1245GMT today, followed by Pres Draghi's press conference at 1330GMT. Jobless

Claims are the main US release at 1230GMT. The level of U.S. initial jobless

claims is expected to fall by 5,000 to 208,000 in the January 19 week after a

decline of 3,000 to a 208,000 level in the previous week, a continuation of the

volatility normally seen at the start of the year.