JPMorgan "remain sidelined on the dollar......>

FOREX: JPMorgan "remain sidelined on the dollar this week as US data is too

mixed (c.f. payrolls) and European data finds a seemingly floor. We nevertheless

continue to highlight SEK and GBP as the G10 currencies most vulnerable to a

more compete unwind of USD shorts and convergence with interest rate spreads.

SEK's crisis of confidence is worse than that washing over some EM FX. The

portfolio has had modest success in European RV. We stay short SEK vs NOK and

CHF and increase the CHF long through GBP/CHF. CHF underperformance in the past

1-2 months could partially reverse as UST yields consolidate and stocks

contemplate the year's lows. GBP has far less interest rate support to

compensate for a timid economy and rising political temperature around Brexit."

- JPM are overweight EM FX in the GBI-EM Model Portfolio across all three

regions. In Asia they hold an overweight in IDR and retain outright longs in

KRW, TWD & SGD. In EMEA EM, they are overweight CE3 vs. underweight RON. In

LatAm, they are overweight ARS, BRL & COP vs. underweight PEN & MXN."