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And just like that, another month has passed by.

Major currencies are keeping more subdued to start the new day/week/month but it is going to be a key period in August trading to see how things will play out for the remainder of the year, especially for the dollar and Treasury yields.

All eyes will slowly turn towards the Jackson Hole symposium, which will take place on 26-28 August. There are still many weeks before that but expect the market to cling on to every word by Fed speakers in the build up in case there are any taper hints.

Besides that, risk sentiment and the continued bid in Treasury yields will remain as two key themes to watch. The latter in particular may still support a stronger yen for the time being and that is something to be wary about for yen crosses.

Looking at structural plays, I still like oil longs, dips on yen crosses (only if approaching key levels as it did in mid-July), and AUD/NZD shorts for the time being.

I'm still not a big fan of the general dollar play at the moment as it feels like the market has some sorting to do with regards to the Fed outlook in the weeks ahead.

I would say that even if the greenback seems to be weakening based on last week's price action, it wouldn't take much to turn things around in the other direction.

For what it's worth technically, the DXY also ran into support from the 38.2 retracement level of its recent upswing @ 91.79 on Friday - trading @ 92.06 currently.

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