DXY has eased 7 pips, moving away from.......>

DOLLAR: DXY has eased 7 pips, moving away from yesterday's post-FOMC highs, and

last sits at 97.62. WTI and gold are unchanged on the day.

- The dollar index declined through yesterday's European session, posting a ~12

pip leg lower pre-WMR fix on the back of a softer than exp. ISM m'fing print.

- Yet, main focus fell on the FOMC MonPol decision, which saw a 5bp cut to the

IOER. DXY extended losses as a result, touching the worst levels in two weeks.

- However, subsequent press conference with Fed Chair Powell allowed DXY bulls

to breathe a sigh of relief. Powell stressed that the FOMC does not see a strong

case for rate move either way and called the IOER adjustment a "technical"

rather than policy based one. He poured some cold water on worries re: inflation

slowdown and highlighted moderating downside risks to the outlook.

- DXY bears look for a dip through the 21-DMA at 97.41, as the level has not

been breached since late March. Below would expose yesterday's low of 97.15. The

initial topside target is provided by 97.73, where the index peaked yesterday.

- U.S. focus today turns to domestic durable goods & factory orders, as well as

nonfarm productivity data.