Markets were happy to buy up the USD today....>

FOREX: Markets were happy to buy up the USD today after five consecutive

sessions of declines as political risk marred AUD and GBP, which sit among the

biggest losers of the session. The dollar index's failure to close below the

50-dma appears to have marked a near-term bottom, helping the index's rise back

above 95.50.

-AUD/USD suffered its worst session in months as political risk proved too much,

as attention remains challenges against Turnbull's leadership. Markets seem

intent on pushing AUD/USD to re-test YTD lows at $0.7203.

-Similarly, markets suffered from indigestion upon release of the no deal Brexit

preparation papers, allowing EUR/GBP to comfortably recover back above the 0.90

level. Although, combative Italy headlines dented the EUR in late trade.

-JPY failed to benefit from safe haven flow despite negative global equities,

with JPY close to the middle of the pack. USD/JPY recovered back above the

50-dma.

-Jackson Hole takes focus Friday, but Japanese CPI and German GDP also due.