Dollar on a roll, hits best level of the......>

FOREX: Dollar on a roll, hits best level of the month

-The greenback broke to fresh July highs Tuesday, with the USD index rallying

for a third session alongside Treasury yields as the front end of the curve

bear-flattened. The move wasn't triggered by any particular headline or data

release, but CME Fedwatch pricing shows a continued trim in pricing for a 50bps

cut from the Fed in July, falling to approx 24% today from 27% this time last

week. The buoyant USD pressed EUR/USD briefly through $1.1150 and AUD/USD back

below the 100-dma at $0.7017.

-GBP slipped for a third session against the USD as Boris Johnson was confirmed

as Conservative Party leader and de facto Prime Minister of the UK, keeping

bear's focus on the recent cycle lows of $1.2382. Poor CBI data trends numbers

also weighed, with total orders numbers hitting the lowest since H1 2010.

-Attention turns to global PMIs, with advance July readings due from Australia,

Japan, France, Germany and the US. US new home sales and New Zealand trade

balance data are also on the docket. US earnings season continues, with reports

from PayPal, Boeing, Facebook and AT&T all due.