The USD remained on the defensive into........>

FOREX: The USD remained on the defensive into early European trade Monday,

following pressure seen through the earlier Asian session. Models have suggested

that the USD would be sold into month-end, with covering for this event seen

since Friday as markets expected to be very thin ahead of year end. DXY

reflected this USD pressure but held of a retest of its Dec13 low(96.588),

consolidated around 96.80 into Europe. EUR/USD traded to an extended high of

$1.1211, Cable to $1.3125, while USD/JPY squeezed down to Y109.07, in Asia but

the USD did manage to claw back some lost ground in Europe, short USD positions

seen slightly exposed ahead of Tuesday's fixings. 

- PBoC weekend decision to apply its LPR to existing floating rate loans helped

Antipodeans in early Asia, before broader USD weakness took hold, while a

stronger PBoC fix helped USD/CNH lower.

- Monday's docket somewhat U.S.-centric. Chicago PMI, advance goods trade

balance, Dallas Fed m'fing index & pending home sales are all due out of the

U.S.

- Japan will observe a market holiday Tuesday through Friday.