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DXY has dropped 2 pips and last sits at......>

DOLLAR: DXY has dropped 2 pips and last sits at 97.60. WTI trades $0.50 lower,
while gold is virtually unchanged at typing.
- DXY declined through yesterday's Asia-Pac session and remained limited in the
London hours, as the escalating U.S.-China trade war continued to weigh on the
greenback. However, DXY managed to reverse its earlier underperformance late in
the day, as U.S. 10-year Tsy yields moved away from recent lows.
- Speaking at a campaign event, U.S. Pres Trump said that "China broke the deal"
and "will be paying." This comes after yesterday's conflicting signals re: the
current state of bilateral trade relations, and just ahead of the 11th round of
trade talks, due to kick off today.
- Worth noting the FT reported that the U.S. will exempt Chinese goods in
transit from the tariffs increase scheduled for Friday.
- A dip through the 21-DMA at 97.53 would open up the May 7 weekly low of 97.38.
Conversely, bulls target the 97.67-74 zone, which has capped gains this week.
- Domestic PPI, trade balance & initial jobless claims take focus in the U.S.
today. Fedspeak will be provided by the central bank's Powell, Bostic & Evans.

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