Post Fed Williams USD sales were quickly.....>

DOLLAR: Post Fed Williams USD sales were quickly faded in early Asia, leveraged

buyers in the dip emerged after the NY Fed released a statement saying that the

remarks were academic and based on research, not about potential policy actions

at the upcoming meeting.

- USDJPY recovered a near 50 pips off initial react lows to Y107.68. The DXY

breached and closed below the base of its triangle which is a continuation

pattern. The index touched pullback lows of 96.67, but has since pared light

gains to 96.90. The 200-dma comes in today at 96.81, ahead of the 61.8%

retracement of the Jun-July rally at 96.50.

- Gold spiked to multi-year highs of $1453.09, before paring light gains. More

importantly, the close above the triangle top is a continuation pattern and

cements the uptrend. The 50% retracement of the Sep 2011 - Dec 2015 decline

provides next resistance at $1483.8, ahead of the psychological $1500 level. 

- WTI & Brent remain locked in a downtrend, last 55.79/62.80.

- Michigan Sentiment the main highlight in the US today. Speeches also scheduled

from Fed's Bullard & Rosengren before next week's blackout period.