The dollar failed to extend its 8-day........>

DOLLAR: The dollar failed to extend its 8-day rally yesterday, position

adjustment saw the DXY retrace back through 97 to close in NY around 96.70.

Recovery efforts remained shallow through Asia, held to a narrow 96.63-74 range.

Near-term support is seen at 96.41/32 which represents the 38.2% retracement of

95.16-97.19 & 100-dma, below here opens the the 50% fibo & 21-dma at 96.18/17.

Bulls need to recover the 97 handle, before targeting the Dec 17 & 14 highs at

97.45/71. Gold holds toward the upper end of its $1309.45-1314.33 overnight

range with topside focus on a break of the 50% fibo $1326.33-1302.85 at

$1314.59. Crude added to Tuesday's gains overnight, with WTI & Brent both

marginally higher on the session. Main highlight in the US today from CPI at

1330GMT. U.S. CPI is expected to rise by 0.1% in January after a

gasoline-related dip in December. A further decline in gasoline prices, as

evidenced by the monthly AAA data, will be the key factor yet again. The core

CPI is forecast to post another 0.2% gain. Annual revisions released on February

11 will be incorporated into the data.