Dollar trades heavy ahead of the NY...........>

FOREX: Dollar trades heavy ahead of the NY crossover as markets continue to shy

away from government shutdown risk.

-EUR/USD gapped higher at the re-opening of trade as the US enters its first

week under formal shutdown. The pair sank throughout the Asia session to print a

low at $1.2214 before dip-buyers emerged to lift the pair back to $1.2250.

Progression in German coalition talks seemingly doing little to underpin the

euro. Any further weakness in EUR could spur more bargain-hunting with fixed

income markets underpinned by sovereign ratings upgrades for both Span and

Greece.

-GBP, NZD and CHF the strongest performers in G10 which continue to benefit from

resumed greenback weakness. Attention now shifts to the vote on a stop-gap

funding bill scheduled for 12 noon EST today. GBP/USD's rise above $1.39 puts

the pair in close proximity to fresh post-Brexit highs.

-Data and newsflow has been thin on the ground, with risk events stacked toward

the end of the week (US, UK GDP, UK jobs figures, ECB and BoJ rate decisions).