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Equities Stabilise at the Lows, Sap USD Bid

FOREX

After an eventful Thursday session, equities have stabilised somewhat early Friday with US stock futures and European cash markets both in minor positive territory. This moderation of risk-off sentiment has sapped the USD rally slightly, with the USD one of the poorer performers in G10 this morning. This has worked in favour of growth proxy FX, with AUD, NZD and CAD flattered so far today.

Data has been few and far between, with Eurozone and UK construction PMI data doing little to move the needle. This has kept attention on today's August Nonfarm Payrolls release, Data leading into the figure has been mixed, with lower-than-expected ADP employment change and employment components below 50 for both the ISM services and manufacturing indices. The US are expected to have added 1.35mln jobs, prompting a further drop in the unemployment rate to 9.8%.

TRY remains weak, with USD/TRY hitting new alltime highs early Friday, with markets wary over reports that Turkey are said to have turned to other providers of air defence weapon systems if their traditional Western allies fail to deliver. USD/TRY topped out at 7.4550 this morning.

Speakers still left to speak include ECB's Lane, who garnered attention last week by stating that the EUR FX rate is important for the setting of monetary policy.

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