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###POV: USD RALLY OR DEAD CAT BOUNCE - The...>

DOLLAR
DOLLAR: ###POV: USD RALLY OR DEAD CAT BOUNCE
- The USD was given a boost across the board by the sharp jump in USD/CNY
following China's reported suspension of the counter-cyclical factor in the CNY
fix.
- The USD is higher on the day against all the majors, except the JPY.
- US CPI and Retail Sales will be closely monitored on Friday with market talk
of firmer CPI expectations. For a continued dollar correction an inflation pick
up will need to be seen to keep the Fed on track for 3 hikes in 2018.
- EUR/USD DOWNSIDE RISK: The next direction for the USD is on a knife edge and
Friday's data could set the direction. EUR/USD $1.1911 is key, below here would
point towards the bottom end of the two-month ascending channel at $1.1838
(100-dma at $1.1829).

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