DXY sits just 2 pips lower at 99.11. Gold....>

DOLLAR: DXY sits just 2 pips lower at 99.11. Gold trades ~$0.20/oz lower at

typing, while WTI deals ~$0.60 higher.

- The dollar index climbed to a new YtD high of 99.67 yesterday before taking a

nosedive. The initial upswing was driven by higher U.S. Tsy yields (after a weak

JGB auction spilled over into core FI space) and comments from Fed's Evans, who

said he expects solid growth in U.S. economy. This was before DXY dipped in

reaction to a miss in U.S. ISM m'fing, which printed at the lowest level in 10

years and indicated that contraction in the sector accelerated, even as

projections were for the headline number to come in at the breakeven level of

50.0. The survey was also particularly downbeat on employment. Late doors saw

gyrations on the back of the latest Brexit reports, which moved cable around.

- A fall through the 99.00 mark would invite DXY bears to target the 38.2%

retracement of this month's rally at 98.98. Conversely, yesterday's YtD peak at

99.67 continues to draw bullish attention.

- ADP employment change headlines the U.S. data docket today. Fed's Williams,

Barkin and Harker will provide some fresh Fedspeak.