The FX market is beginning to take shape this week and the defining move so far is selling the US dollar. We have seen that before on worsening trade but I don't see how that's the case as Trump has been touting a US-China deal lately.USD/JPY is down 40 pips to 144.45 and that's wiped out about half of last week's gain. The dollar is also solidly lower against the pound, euro and Australian dollar.Now that could just be some give-back after the strong moves on Friday after non-farm payrolls. It's a report that tends to get overdone and at this point doesn't really tell us what the Fed will do, particularly since several of the metrics in the household data weakened. Another possibility is that there is some angst building about the worsening riots in Los Angeles. Those are related to immigration raids but we could some see an overwhelming US government response that fans the flames."This moment calls for decisive leadership. The president will not tolerate rioting and violence," wrote JD Vance on twitter in the last half-hour. The President is repeatedly calling them 'insurrectionists' and he's ordered some US troops to be on standby.I tend to think that these things blow over but you never know. So long as it remains contained in L.A. I don't see problem but if we see other protests, then it could legitimately weigh on the US dollar. Also notable is that a series of Waymo cars was lit on fire and I think self-driving cars will increasingly be the target of protesters. This article was written by Adam Button at www.forexlive.com.