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Markets Non-Committal Ahead of Jackson Hole

FOREX

Activity in currency markets has been muted this morning, with little newsflow or datapoints to move prices. As such, no surprise to see volume gauges running lower than average and implied volatility contained.

NZD is the best performer in G10, prompting NZD/USD to show at a new weekly high of 0.6574 before stalling, while CHF and EUR are both modestly weaker.

EM currencies are trading well while developed markets remain quiet, with ZAR, TRY trading higher against the USD. The moves follow a shaky start for the TRY, however, which hit record lows again overnight at 7.4169 for USD/TRY before the central bank opened a $1bln USDTRY swap auction to stabilise the price.

A higher-than-expected South African inflation release helped support ZAR, keeping pressure on yesterday's USD/ZAR low at 16.7228

US prelim durable goods orders and speeches from BoE's Haldane and BoC's Wilkins could elicit interest, but the focus for the week remains on Fed Chair Powell's appearance at Jackson Hole tomorrow.

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