Dollar pullback pauses -The DXY trades........>

FOREX: Dollar pullback pauses

-The DXY trades slightly higher Thursday and is on track for only its second

positive session in 11, with markets taking profits and covering successful

shorts. The USD gains come courtesy of the EUR and GBP, which both trade

modestly lower after sharp gains Wednesday.

-SEK is on top of the pile today, rallying on the back of strong manufacturing

and consumer confidence surveys, but the wider picture remains uncertain ahead

of September 9th elections. EUR/SEK remains within 0.7% of nine-year highs.

SEK's rally has fed through to NOK, which is the second strongest among the

majors, with JPY close behind.

-NZD is falling against all other G10 FX, with a drop in both ANZ business

confidence and economic activity measures, allowing AUD/NZD to rise back above

the N$1.0934 50-dma.

-German regional CPIs generally slowed from the previous, supporting the

consensus estimate for a fall to 0.1% M/M for the national figure at

1300BST/0800EDT. US personal income/spending and Canadian GDP also due today.