FX Update: The Dollar majors have been showing little net change
FX Update: The Dollar majors have been showing little net change in thin, early-week trading. The biggest movement heading into the London interbank open are AUD-USD and NZD-USD, with both showing gains of 0.2%. Stock markets in Asia have been mixed, while EUR-USD and USD-JPY have been treading sideway paths, the former in the low 1.1400s and the latter above 110.50. Market participants are looking ahead to potential market moving events this week. Analysts have the resumption in Sino-U.S. trade talks after a two-month hiatus, which will take place tomorrow and Wednesday, the release of the FOMC minutes from the recent meeting, and the Jackson Hole economic policy symposium, on Friday, which will feature a keynote speech by Fed Chairman Powell and provide ample opportunity for policymakers to expound talking points. There is also optimism, as expressed by Mexican officials last week, that a bilateral agreement on NAFTA could be reached this week. Brexit negotiations, which resumed last Thursday after a summer break, are also on the radar screen, and the spike in Italian yields and the causational political situation in Italy should also be monitored closely. USD-TRY has dropped back below 6.000, driven by a rebound in the Lira after Qatar's and Turkey's central banks signed a currency swap on Sunday which will facilitate liquidity and support from Qatar, though concerns remain about Turkey and other fragile emerging-world economies, caught out by a mixture of tighter U.S. monetary policy, hefty dollar borrowing and poor economic policies.