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The USD witnessed steady gains yesterday,....>

DOLLAR
DOLLAR: The USD witnessed steady gains yesterday, underpinned by strong GDP &
Chicago PMI data. This initially spilled over into Asia which took USDJPY
through Y111.50 and accelerated the uptrend towards Y111.80. Firmer Asia stocks
after the MSCI confirmed it would increase the China weight in its Benchmarks &
UST yields were also seen attributed to the move.
- The DXY largely consolidates towards the peak of its narrow 96.21-30 range
with topside focus on a weekly close above the 100-dma at 96.45. Above here
opens the 50% retracement of 97.36-95.82 at 96.59, ahead of the 61.8% fibo & Feb
22 high at 96.77/78.
- Gold extends the downtrend towards $1310.00, with losses approaching 3% off
its Feb 20 high. Next support is seen at $1302.48 from the Feb 14 high, ahead of
the 50-dma at $1301.48. Expect protection behind ahead of the $1300 level.
- WTI & Brent sit around $0.50 higher at writing, leaning on a slightly stronger
than expected Chinese Caixin manufacturing PMI release for support.
- US Core PCE, mfg PMI, Michigan Sentiment & ISM mfg the main highlights today.

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