The dollar sits flat at the European.........>

DOLLAR: The dollar sits flat at the European crossover, registering minor gains

against EUR & CHF, losses against AUD, GBP & NZD. The DXY largely consolidated

yesterday's solid gains to hold toward the peak of its narrow 95.81-85 overnight

range. Topside focus remains on a break of 96.06/17 which represents the 38.2%

retracement of 97.71-95.02 & 100-dma, above here opens a run at the Jan 24 high

& 61.8% fibo at 96.57/58. Gold's corrective pullback based at $1308.73

yesterday, with the recovery stalling ahead of $1315.44 which represents the

38.2% retracement of the recent downtrend $1326.31-1308.73. This level is now

starting to grow in importance having failed three times. Oil futures also

witnessed a session of low volumes contained to narrow range trade. USDJPY did

breach the key 110 level yesterday but failed to close above and will be

monitored again today, last Y109.92. Main data highlight in the US today from

ISM Non-manufacturing. The non-manufacturing ISM reading is expected to fall to

56.4 in January from a revised 58.0 reading in December. The Philadelphia Fed

non-manufacturing index was at 57.6, while the Markit Services index declined

slightly to 54.2.