Equity Volatility Settles With China Fears, Euro Takes Center Stage

Talking Points:

• Volatility surrounding the PBoC's change in policy approach seems to be settling as traders acclimate

• Euro carries top event risk Friday with a Eurozone meeting on Greece and core 2Q GDP figures due

• The Canadian Dollar is posting a familiar pattern, and oil may determine whether it plays out

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Fears of repercussion from China's Yuan devaluation has cooled, leading both global equities and the Aussie dollar to settle. Whether the market has taken the PBoC's reassurances of market-determination and doubt of a 10 percent adjustment to heart or there was a practical moderation from smaller changes between daily fixes; the heat has dissipated. That means secondary impact to risk trends, trade partners and global policy 'rivals' has also tempered. Equities this past session were notably calmer without fear of key breaks. Aussie crosses have similarly pulled back from key breakouts. Meanwhile, the Euro is facing a possible spark of volatility in a session heavy in event risk ahead. For a technical bent, the Canadian Dollar crosses are facing a common pattern often associated with reversal; but whether it turns or not may depend on oil. We look at the market themes and movers in today's Trading Video.

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