The dollar extended its corrective...........>

DOLLAR: The dollar extended its corrective pullback yesterday, weighed by Dovish

Fed Bullard comments that said a downward policy rate adjustment may be

warranted soon. The DXY closed below its 50-dma (97.51) for the first time since

mid-march to print lows of 97.10. Recovery efforts have so far remained shallow

and keeps the downtrend intact with near-term support at 97.02 from the May 13

low. The 100-dma is placed behind at 96.98, ahead of the 61.8% retracement of

the Mar-Apr rise at 96.74. 

- The continued pullback in UST yields accelerated on Monday with the 10y

printing 2.0590%, its lowest levels since Sep 2017. Gold further rallied to

$1327.71, before stalling ahead of resistance from the 76.4% fibo of the Feb-May

fall at $1327.81. A break brings channel top resistance into view at $1330.45.

- WTI & Brent sit mid-range having faded from the best levels seen on Monday.

- US Factory Orders & Durable Goods the main highlights today at 1400GMT. U.S.

factory orders are expected to fall by 1.0% in April, reflecting a 2.1% decline

in durable goods orders, offset by an expected further gain in nondurable goods

orders. Annual revisions released on May 16 will be included in the data.