G10 crosses were largely range-bound.........>

DOLLAR: G10 crosses were largely range-bound overnight, but markets did focus on

a Reuters news story that Japan and the US may reach a small trade deal which is

to be announced in September. The dollar registered minor gains against NOK, AUD

& losses against CAD, NZD.

- The DXY rallied to 97.43 yesterday to close above the 200-dma. Despite this,

the index drifted through Asia and holds near the base of its narrow 97.30-41

range. The 97.45-60 area has so far proved hard to overcome which holds down

trendline resistance drawn off the May 23 high & previous series of highs. The

200-dma continues to underpin, this comes in today at 96.80.

- USD strength pressured gold to extended pullback lows of $1401.48 yesterday,

before fading. Above $1400 keeps the recent uptrend intact with focus on a break

of the $1418-20 area. Last $1405.40.

- UST yields rallied yesterday with the 10y once again topping out ahead of

$2.1460/00, giving more importance to this key level. Last 2.0920%.

- US building Permits & Housing Starts the main highlight at 1230GMT. Fed's

Beige Book at 1800GMT. US Kansas Fed George is also due to speak(1630GMT).