DXY has dropped 6 pips so far and last.......>

DOLLAR: DXY has dropped 6 pips so far and last deals at 96.46. WTI trades near

enough flat, with gold $5 or so higher.

- The dollar index fell 38 pips yesterday, with broader USD weakness, beginning

around the NY open, with some cautious Fed rhetoric and a BBG report re: the

U.S. demanding yuan stability from China adding weight through the session.

- Fed's Williams told RTRS that he is "comfortable with the level U.S. interest

rates are at now and that he sees no need to raise them again unless economic

growth or inflation shifts to an unexpectedly higher gear," while Fed's Mester

said that the central bank's balance sheet run-off should terminate by year end.

- DXY bears look for a break below yesterday's low of 96.43, which would open up

a series of key DMAs; the 100-DMA, 50-DMA & 21-DMA are located at 96.40, 96.34 &

96.32 respectively. Meanwhile, bulls need a move through 97.09, which limited

yesterday's gains..

- U.S. spotlight today falls on the release of the latest FOMC meeting minutes,

with participants set to look for further clarity re: the Fed's recent turn to a

more neutral stance. Elsewhere, Fed's Kaplan is due to speak.