The Fed signalled an end to the balance......>

DOLLAR: The Fed signalled an end to the balance sheet run off with patience on

rates in the FOMC minutes yesterday. The dollar firmed on react and largely

pared early NY losses to close flat on the session. Consolidation has remained

the theme through Asia with the USD registering modest gains across G10 at the

European crossover. 

- The DXY squeezed to 96.64, before meeting resistance from the Feb 20 high. The

61.8%/76.4% retracements of 97.08-96.28 provide the next resistance at 96.77/89,

ahead of the Feb 19 high at 97.08. Bears downside focus remains on a close below

the 100-dma at 96.41.

- Gold touched multi-month highs of $1346.80 yesterday and was starting to

generate overbought conditions on the technical studies. (See MNI Analysis email

- Gold - Bullish Exhaustion 1319GMT). Gold has since retraced to $1337.55 and

now gives more importance to the $1345/1350 area which holds a number of

short/long-term key resistance levels.

- WTI & Brent have both added around $0.40 after ticking higher on Wednesday.

- US jobless Claims, Durable Goods & Phila Fed the main highlights today.