Expectations that a phase 1 trade deal between the US and China could be close to being achieved coupled with another Fed rate cut in October have boosted risk appetite, according to analysts at Rabobank.
"While this could create some safe-haven support for the USD, disappointing US economic data could undermine the greenback."
"Hopes for some reprieve from trade tensions have reduced demand for safe-haven assets – though this is set to reverse if a phase 1 trade deal cannot be signed."
"JPY net positions held in negative ground for a sixth consecutive week and shorts continued to rise."
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