The USD witnessed modest gains overnight.....>

DOLLAR: The USD witnessed modest gains overnight ahead of today's key NFP

release. The DXY lifts to 95.85 and will be looking to reclaim the 96.00 level,

before challenging yesterday's highs at 96.12. It's also worth noting on the

seasonality charts that the DXY has registered gains in October for the last 4

years straight, currently +0.74%. The US 10-Yr remains at elevated levels,

holding either side of 3.19%, while gold is struggling to build momentum above

$1200, last $1198.35. EURUSD has so far managed to hold $1.1500, USDJPY briefly

made a show back above Y114.00, while AUD & NZD extended declines to post fresh

ytd lows at $0.7062/0.6463 respectively. NFP's are forecast to rise by 182,000

in September after a stronger-than-expected 201,000 rise in August. The effects

of Hurricane Florence may be limited because it occurred very late in the survey

week. The unemployment rate is expected to slip to 3.8% after staying at 3.9% in

August after rounding. Hourly earnings are forecast to rise by 0.3% after solid

gains in the previous two months, but a 0.5% gain in September 2017 due the

hurricanes that month should reduce the year/year rate this year. The average

workweek is expected to hold steady for another month at 34.5 hours.