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Trump effect pervades markets for second......>

FOREX
FOREX: Trump effect pervades markets for second session
-After yesterday's (very) thinly veiled attack on the Fed by President Trump,
the dollar was sold in favour of other G10 and emerging market FX and that
remains the case this morning, with MXN, ZAR rallying while G10 trade favours
the EUR, NZD and Scandi currencies. DXY is now within striking distance of the
50-dma at 94.977 on the downside.
-JPY is the sole major currency underperforming the USD after briefly dipping
below Y110 overnight, but USD/JPY has ebbed higher throughout Europe on modestly
improving risk sentiment (EU equities are moderately higher so far today). The
pair managed to recover back above both the 100- and 200-dmas this morning,
allowing bulls to regain some poise.
-Volumes and liquidity appear to have recovered moderately from yesterday's
lower levels (likely spurred by renewed Trump headline risk) with markets
watching for any further commentary from the White House today.
-Major releases are few and far between today, keeping focus on Fed minutes
tomorrow and Jackson Hole kicking off Friday.

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