The Dollar rally petered out on Monday........>

FOREX: The Dollar rally petered out on Monday after the DXY touched multi-month

highs.

- While the USD was dominant from the off, pressing EURUSD & GBPUSD to five

month lows, NY trading hours saw the greenback give back a chunk of its gains,

allowing most of the majors to recoup the day's losses, prompting the USD to

close mixed.

- AUD was the day's best performer, as AUDUSD continued to bounce from the near

1-year lows seen last week. While a firm uptrend is yet to materialise the close

above 0.7570 has opened up the possibility of a test of the 50-SMA (0.7645).

- GBP sat at the bottom of the pile after failing to benefit from the USD

sell-off. Weekend reports pointing to a snap election in the Autumn put GBP

under pressure, creating underperformance vs. the EUR despite political

uncertainty still running rife in Rome.

- BoE policymakers are due to speak in front of the TSC on Tuesday, while the

next round of Brexit negotiations get underway & Italy's Pres is due to meet

with the M5S & League party leaders after receiving their PM nominations.