Trump trade ire raises fear of material.......>

FOREX: Trump trade ire raises fear of material market fallout

-Global equity markets took a sharp leg lower Friday, with most major indices

across mainland Europe and the US shedding over 1%. In tandem, the US treasury

curve flattened, with the 1y10y spread inverting further and sapping strength

from the USD. This left JPY at the top of the pile, with USD/JPY extending

losses below Y109. A spate of USD selling ahead of the month-end fix, however,

managed to spare the likes of EUR/USD and GBP/USD from further losses.

-EMFX had a patchy session, with the MXN suffering its worst session of the year

as Trump turned up the tariff pressure, while BRL outperformed with some citing

a crunch in a market caught short BRL/MXN. Positive headlines also crossed on

Brazilian pension reform, prompting USD/BRL to show below the 50-dma. Poorer

global trade sentiment also sent waves through commodity markets, denting WTI

and Brent crude futures to the tune of 3%, pressing CAD closer to the year's

lows against the USD.

-Next week, attention turns to US and Canadian jobs reports, China's Caixin PMI

numbers, Eurozone CPI data and rate decisions from the ECB and the RBA.