Risk improved yesterday following............>

DOLLAR: Risk improved yesterday following Washington's announcement to delay

some additional tariffs on Chinese imports. Stocks rallied across the board with

the firmer tone spilling over into Asia.

- The DXY formed a base around the 100-dma (97.36), before squeezing back above

97.80. Consolidation has largely remained the theme through Asia and holds

toward the peak of its 97.73-84 range. Expect resistance on approach to the

98.00 level which holds the 50% retracement level of 98.93-97.03.

- Improved risk saw gold retreat $55 off its multi-year high ($1535.11), before

basing at $1480.00. The yellow metal has since recovered to hold $5 either side

of the $1500 handle. Support comes in today at $1468.40 which represents the 50%

retracement of the August rally.

- WTI & Brent spiked +$3 but failed to challenge early August highs, last

$56.40/$60.74.

- Quiet on the US calendar today with import/export data due at 1230GMT. US

import prices declined by 0.9% in June which is the first monthly decrease since

December 2018.