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Trump effect weighed in for a second..........>

FOREX
FOREX: Trump effect weighed in for a second session on Friday, as he doubled
down on his Fed criticism, tweeting: "Tightening now hurts all that we have
done", adding that the U.S. has been harmed by "illegal currency manipulation"
from China and Europe. Markets were happy to sell the dollar for a second
session, helping lift EUR/USD and AUD/USD back to broadly flat/minor positive on
the week.
- U.S. Tsy Sec Mnuchin has played down the risk of an FX war over the weekend.
- USD/CNY touched 13-month highs as Trump said he was "ready to go" on $500bn of
import tariffs.
- Trump's jawboning, lacklustre equities & a BOJ sources piece pointing to the
potential for discussion re: policy adjustment at the BOJ's July meeting pushed
USD/JPY lower.
- Commodity-tied FX were among the strongest performers as the commodities
complex rebounded, with industrial metals in particular seeing some strength.
- Eurozone PMIs, AU CPI, ECB rate decision & U.S. GDP are the calendar
highlights this week.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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