EUR spared as Germany hints it could loosen...>

FOREX: EUR spared as Germany hints it could loosen the purse strings

-EUR/USD was sold from the off Friday, prompting bears to re-target recent cycle

lows at 1.1027 before reports in Der Spiegel suggested Germany could loosen the

purse strings and raise debt if the domestic economy deteriorates sufficiently.

EUR recovering modestly from the lows on the report, briefly rising back above

the 1.11 mark. Haven FX was offered as equities recovered, helping press CHF and

JPY to the bottom end of the recent range. The SNB, however, will likely be

dissatisfied with EUR/CHF's proximity to recent cycle lows. 

-GBP was, again, the best performer in G10 Friday, helping boost GBP/USD back

above $1.2150 for the first time since August 9th. Downside pressure on the

currency has eased slightly in recent sessions (evident in risk reversals

inching off the lows: put vol declines) as markets contemplate the cross-party

effort to halt a disruptive Brexit.

-Canadian CPI, Fed minutes, prelim August Eurozone PMI data and the annual

policy symposium in Jackson Hole, Wyoming are the calendar highlights for the

coming week.