G10 FX posted modest gains against the.......>

DOLLAR: G10 FX posted modest gains against the dollar overnight, following on

from yesterday's dovish FOMC which suggested no Fed hikes in 2019, one in 2020.

The DXY slipped sharply through 96 to extended Fed react lows of 95.74, before

basing ahead of the close. Recovery efforts have so far remained shallow through

Asia tied to a 95.83-94 range. The 200-dma (95.85) seen key with a close below

here likely to accelerate the downtrend toward 95.66 which represents the 76.4%

retracement of 95.02-97.71, below here opens the Jan 31 low at 95.16. Bulls need

to recover the 96 handle, before putting the focus back on 100-dma & Mar 20 high

at 96.54/57.

- Broad dollar sales has seen gold rally +$20 off yesterday's low ($1298.77) to

$1319.78 and holds firm into Europe. Gold has now taken out long-term trendline

resistance off the Apr 11 2018 high, further enhancing the bullish breakout.

Next resistance is seen at $1321.64 from the 61.8% fibo of $1346.80-1280.94, a

break opens the Feb 22 high at $1333.19.

- Focus turns to US Jobless Claims & Phila Fed at 1230GMT.