The softer dollar theme on react to..........>

DOLLAR: The softer dollar theme on react to yesterday's dovish Fed, spilled over

into Asia. Having failed to break the 96 level, the DXY witnessed a sharp

retracement towards 95.25 before extending the corrective pullback through Asia

to 95.20. Bears will focus on a close under the 200-dma at 95.29, below here and

expect support on approach to 95 (95.02 - ytd low Jan 10). Bulls need a topside

break of 96, before challenging the 100-dma at 96.14. Gold remains at elevated

levels just off yesterday's multi-month highs of $1323.43 and retains the

bullish trend. Next resistance is seen at $1326.03 from the May 11 2018 high,

above here opens a run at the $1350 level. US data scheduled for release today

from Jobless Claims (1330GMT), MNI Chicago Business Barometer (1445GMT) & New

Home Sales (1500GMT). The level of initial jobless claims is expected to rebound

to 218,000 in the January 26 holiday week after a decline of 13,000 to a 199,000

level in the previous week, the lowest level in almost 50 years. The MNI Chicago

PMI is expected to fall to 60.8 in January after a small increase to a revised

63.8 reading in December.