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EMERGING MARKETS: Notable Yen Strength, US Presidential Race Heats Up

EMERGING MARKETS
  • GLOBAL FX: Pervasive JPY strength took focus early Monday, with a confluence of light volumes, short-covering, pre-Jackson Hole positioning building on a JPY rally that was potentially initially triggered by news of a takeover offer from Japan's Seven & I from Canada's Couche-Tard. The move lower for USDJPY has raised focus on intraday support and levels seen lower at 145.52 (the 50% retracement of the corrective bounce off 141.70) while 15 min candles identify ~146.55-60 as a key pivot point.
  • US ELECTION: The race for the White House will reach a fever pitch this week, with Vice President Kamala Harris and Republican nominee Donald Trump battling for momentum - and attention - around the Democratic National Convention in Chicago.
  • CHINA/US: China’s central bank said a meeting in Shanghai produced an agreement with the US Treasury to appoint contact people to deal with any future “financial stress events,” a rare example of the world’s two biggest economies seeking common ground. The two sides also “exchanged lists of financial stability contacts” during the fifth meeting of the so-called Financial Working Group that was set up following Treasury Secretary Janet Yellen’s visit to China last year.

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