Markets take profit on modest dollar gains....>

FOREX: Markets take profit on modest dollar gains ahead of Powell testimony

-The greenback sits slightly softer so far Monday, but the losses are modest as

markets trim profitable positions following the Friday payrolls rally. NZD sits

at the other end of the scale Monday, resuming its incline after the sharp

losses Friday. Commodity markets have been supportive of high beta FX, with oil

futures up around 0.5% while industrial metals also gain. Equities look far less

favourable, with core European indices and US stock futures generally lower.

-TRY has been one of the week's biggest movers so far, with the currency firmly

underperforming broader EMFX space after President Erdogan removed the head of

the Turkish central bank. The President subsequently made it clear that the

government expects the CBRT to follow the government's lead on rates, which has

a clear easing bias. USD/TRY surged back above the 100-dma ta 5.7278 in

response.

-The data and speaker slate is very thin Monday, with just the Bank of Israel

rate decision on the docket.