Early FX colour
USD: Calm start to the week given the quiet newsflow thus far, the greenback up marginally by 0.1% to remain within close proximity to 93.50. USD also unfazed by North Korean anger at South Korean and US forces beginning military exercises.
EUR slightly offered this morning ahead of the main risk event in which Draghi is set to speak at the Jackson Hole Symposium later this week, as such positioning for this could see EUR longs reduced. As a reminder, source reports last week indicated that Draghi was set to stick to his dovish stance, which could weigh on EUR/USD. Influence of today’s option expiries could grow with 720mln and 918mln set to roll off at 1.1700 and 1.1795-118.00.
JPY firmer across the board with equities taking a slight dip this morning, USD/JPY now tripping below 109.00 to hover around intra-day lows. More US political concerns with regards Trump’s administration could continue to send USD/JPY lower with a possible move towards the YTD low at 108.11.
21 Aug 2017 - 08:50- Research Sheet- Source: RANsquawk
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