DXY last sits at 95.34 after falling 48......>

DOLLAR: DXY last sits at 95.34 after falling 48 pips yesterday on the back of

the FOMC MonPol decision and accompanying rhetoric. The Fed stood pat on its

MonPol settings, but removed "further gradual increases" from its forward

guidance, signalling a move to a neutral stance, citing "muted inflation" &

"global econ & financial developments." The FOMC also indicated increased

flexibility re: balance sheet normalization, but emphasized that the fed funds

rate is its "primary means" of adjusting MonPol. The post-FOMC USD weakness

spilled over into the Asia-Pacific session, but has moderated. WTI trades ~$0.40

higher on the day, while gold is close to unch. at writing. 

- Barclay's passive month-end rebalancing model points to a strong USD selling

versus all majors (EUR, JPY, GBP, AUD & CAD are included in the model). 

- DXY bears look for a move through the nearby 200-DMA at 95.29, which would

allow them to target yesterday's low of 95.25, ahead of the lower 1.0% 10-DMA

envelope at 95.01. On the topside, initial resistance is located at 95.90, which

represents the 21-DMA, followed by yesterday's high of 95.98. 

- U.S. focus today turns to Chicago PMI & the ongoing Sino-U.S. trade talks.