The USD encountered mild pressure across.....>

DOLLAR: The USD encountered mild pressure across the board overnight which saw

the DXY ease back under the 97 level to 96.80. Bullish exhaustion settles in

with near-term support from the 21-dma & 61.8% retracement of the recent uptrend

at 96.54/44, a break here opens a move toward the 96.00 area, ahead of the

100-dma at 95.35. Bulls need to clear the double-top resistance area at 97.65/70

to re-ignite positive momentum and a run at 98. The pullback in the USD has seen

gold trade toward the higher end of its $1208.36-1213.76 Asia range, targeting a

break and close above the 100-dma at $1214.20. 

- However, there could be limited follow through today with the next SOMA

redemption day taking effect to the value of $17.4bn. This is where the Fed

unwinds its balance sheet and redeems the full amount paid for in bonds,

normally resulting in USD demand. Since the end of February, EURUSD has always

been lower at CET1715 vs CET0800, by an average of 0.27%.