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Dollar dunked as market cranks up Fed.........>

FOREX
FOREX: Dollar dunked as market cranks up Fed easing expectations
-Change in nonfarm payrolls came in well below even the lowest analyst
expectations, hitting a mere +75k, the second lowest turnout in close to two
years. This, twinned with a 0.1 ppt miss on earnings, conspired against the
greenback and the US yield curve, as markets rushed to price in a greater chance
of the Federal Reserve cutting interest rates as soon as July. The USD index
suffered first and foremost, showing below the 200-dma for the first time since
March and helping boost commodity-tied currencies.
-CAD sits at the other end of the table as the jobs market moves from strength
to strength, shaving 0.3 ppt off the unemployment rate in the process. USD/CAD
cut firmly below the uptrendline drawn from October 2018 lows, suggesting
another leg lower in the pair could be due.
-UK jobs data, US CPI & PPI, retail sales and prelim Uni of Michigan sentiment
are the data highlights. Politics continues to draw focus, however, with
attention turning to any installation of US tariffs on Mexico from Monday and a
meeting between US Treasury Sec Mnuchin and PBoC Governor Gang this weekend.

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