Dollar runs riot post payrolls, but loses.....>

FOREX: Dollar runs riot post payrolls, but loses lustre on Nunes memo.

-Today's NFP report was uniformly strong, and greenback buyers sent USD/JPY to 2

week highs (stopping just short of Y110.50) and EUR/USD back toward (but not

quite below) $1.24.

-Much of this price action was reversed upon the release of the Nunes memo,

which sent equities and Treasury yields lower as buyers were reluctant to hold

risk over the weekend. This dented the dollar and erased much of the

post-payrolls rally.

-Antipodean currencies slid, with AUD and NZD at the bottom of the pile as

commodities prices fell sharply (Brent -1%, silver -3.2%, copper -0.6%). AUD/USD

bounced off lows of $0.7921, but a move back below $0.79 looks realistic should

the USD's rally pervade into the Monday Asia session.

-EUR/GBP looks to finish the session close to the week's highs of Gbp0.8833 as

ECB's Villeroy warned against breaking the rules on competitive devaluation.

-Next week, focus turns to the Bank of England's Super Thursday, plenty of

speeches from the ECB governing council and US ISM non-manufacturing data.