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Talking Points:

• Both the US Dollar and S&P 500 have extended their impressive - but contradictory - rallies

• Surprises from both the Fed and BoE minutes have given both currencies a jolt

• High-level event risk for economic activity and the Jackson Hole Symposium threaten heavy seas ahead

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It is hard to tell what was more surprising - the increasingly hawkish tone from the Fed minutes or the S&P 500's resilience to return to record highs. Expectations for fundamental waves this past session were low given the listings on tap, yet the minutes from both the Federal Reserve and Bank of England offered up unexpected turbulence. In particular, the shift towards hawkishness from the US central bank caught the market off guard and sent the USDollar to six months highs while forcing breaks or extending runs for EURUSD, GBPUSD and USDJPY amongst others. That said, the move towards monetary policy normalization has yet to unnerve the risk exposed. Which trends will stick and which will run out of steam? We discuss that in today's Trading Video.

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