Pullbacks have so far remained shallow...>

DOLLAR-YEN: Pullbacks have so far remained shallow in early NY to largely hold

Y110.80-85. Focus turns to US data this afternoon for direction. At 1230GMT

initial jobless claims are released with expectations of a rise by 3,000 to

215,000 in the August 18 employment survey week after a decrease of 2,000 to

212,000 in the previous week. At 1345GMT is the Markit manufacturing and

services index flash data, the previous index readings were 55.3 and 56.0

respectively. New home sales cross the wires at 1400GMT and are expected to rise

to a 645,000 annual rate in July following a sharp June drop. Unadjusted sales

were up 1.8% from a year earlier in June. Meanwhile, home supply was up 1.7%

month/month and 10.3% year/year, so the supply is rising and should be more than

adequate to meet demand. Also, a reminder of the large ($1.28bn) Y110.95-00

option expiry for today's NY cut. USDJPY last Y110.82.