DXY has dropped 9 pips thus far and last.....>

DOLLAR: DXY has dropped 9 pips thus far and last sits at 96.82, with U.S.

markets closed for a national holiday today. WTI has added $0.30, while gold

trades $2.20 higher. On Friday, the dollar index shed 7 pips, as data releases

sent mixed signals; Empire m'fing & U. of Mich. topped expectations, while

industrial output disappointed. U.S. President Trump signed a funding bill to

avert a government shutdown, at the same time he declared a national emergency

re: the border situation. Equities were underpinned on the back of "progress" in

the U.S.-China trade talks, ahead of further dialogue in Washington scheduled

for this week. Fed's Bostic spoke, indicating that he doesn't have a particular

timeframe in mind re: balance sheet normalisation, reiterating his base case of

1 rate hike in 2019, followed by another in 2020, stressing that he is no rush

to arrive at the neutral rate. Elsewhere, Fed's Daly spoke with the WSJ, noting

that she sees a good chance of no rate hikes in 2019.

- DXY bears eye the 100-DMA at 96.38, and a break below would open up the 21-DMA

at 96.30. Meanwhile, bulls look for a jump above Friday's high of 97.37, which

would bring the upper 1.0% 10-DMA envelope at 97.69 into play.