Healthy risk appetite pressures DXY through...>

FOREX: Healthy risk appetite pressures DXY through key support

-Firming expectations of a constructive US-China trade delegation meeting in

early October as well as stellar US non-manufacturing numbers helped underpin

risk appetite throughout the Thursday session. This boosted US equity markets to

the best levels since early August at the expense of US bond markets as US

yields rallied sharply across the curve.

-ISM non-manufacturing data broadly beat expectations, with particular strength

noted in both the new orders and business subcomponents. Employment signals were

more mixed, however, but today's better ADP Employment Change fuel some optimism

for Friday's payrolls release. Better risk appetite pressured JPY and CHF to the

bottom of the pile, while a hawkish Riksbank and soothing Brexit concerns

boosted SEK and GBP respectively.

-August Nonfarm payrolls are expected at 160k, but this whisper number sits

slightly higher than consensus given recent data strength. German industrial

production and the Canadian jobs report are on the docket, as well as a speech

from Fed's Powell at 1730BST/1230ET.