The risk averse theme spilled over into......>

DOLLAR: The risk averse theme spilled over into Europe which sees JPY top of the

pile, aided by soft US Tsy yields & equities. USDJPY touched pullback lows of

Y110.04 and nears the key Y110 level which holds option-related support to the

value of $1.05bn at today's NY cut.

- The USD is moderately lower across G10, with the DXY sitting at the base of

its 96.82-97 range. This brings the 100-dma back into view at 96.56, ahead of

the 50% retracement of 95.74-96.97 at 96.36. On the topside the 97 area is

starting to grow in importance having registered a series of highs on approach.

- Gold briefly traded under the 50-dma ($1308.09) to $1307.35, but has since

reclaimed the $1310 level on the weaker USD theme. Downside support is seen at

$1302.79 which represents the 50% fibo of $1280.94-1324.63.

- WTI & Brent hold toward the base of their respective narrow ranges.

- US GDP, Core PCE, Personal Consumption & Jobless Claims are released at

1230GMT, Pending Home Sales follow at 1400GMT. Analysts expect US Q4 GDP to be

revised down to a 2.3% rate of growth from the 2.6% initial estimate, keeping it

below the 3.4% pace in the third quarter, but ahead of some estimates for Q1.