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A Muted Morning


China Repo Rates Fall on Tuesday


RBC: Receive 1Y1Y Vs. U.S.

DOLLAR: The dollar rally continued on Friday, extending its winning streak for a
seventh consecutive session. A quieter session overnight with Japan out
(Foundation Day), saw the DXY remain at elevated levels held to a narrow
96.61-70 range. Topside focus remains on the 96.70 double top resistance area, a
break opens a run towards the psychological 97 level. Above here opens 97.08
which represents the 76.4% retracement of 97.71-95.02, ahead of a run at the
December highs. Gold's pullback based ahead of $1302.50 last week, the recovery
extended back above $1315 but with lack of follow through faded. A subdued Asia
session has seen the yellow metal hold toward the lower end of its
$1310.63-1314.95 range with a break either side of $1300-1326 needed for
direction. Both Brent & WTI edged lower with bulls losing their grip on the
21-dma. Very light on the US calendar today with the only main release at
1600GMT from the NY Fed expectation survey.