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Japanese equity trade has moved lower in afternoon trade, with the Nikkei collapsing 1% and pulling S&P Futures numbers lower to test support at 909.00. Oil and gold markets are lower, but holding support at 68.80 and 935.00; alough they may not be able to easily hold if global equity markets move lower.

As stocks lose value the move to bonds, and relative safety, empowers the dollar and weakens commodities. The oversold 4 hour charts on the dollar on Friday are starting to reverse, and the market mechanics are now backing a continuation of that move to buy the dollar at the start of a very busy week of economics. The daily chart momentum on the majors is benign; there is no really strong sentiment either way on fair dollar value in the big picture.

This may well be the calm before a massive storm as this week brings a very important read on global economics, including regional retail sales, PMI, employment, trade balance, major interest rate decisions, and non-farm payrolls, on a week that also has two bank holiday's thrown in for good measure.

No ranges have been broken or tested that are strong enough to garner market-wide forex reactions, but that may well change as European markets get underway.