MORNING BID EUROPE-Dollar explores new territory

* A look at the day ahead from EMEA markets editor Mike Dolan. The views expressed are his own.

LONDON, Aug 1 (Reuters) - The U.S. dollar’s accelerating reversal, which took euro/dollar to a new 2-1/2 year high of $1.1845 overnight, is no longer just a removal of the post-election ‘Trump trade’.

New (KOSDAQ: 160550.KQ - news) ground is being mapped and both the dollar’s DXY index against the six most traded world currencies and the Federal Reserve’s broad trade-weighted index are now down more than 3 percent since before the Nov 8 presidential poll that brought Donald Trump to power - and more than 10 percent below the peaks of early January.

As continual changes of top personnel in the White House threaten to descend into farce, markets have clearly taken all hopes of a fiscal stimulus off the table but now appear to be pricing in further woes.

Some of the overshoot is due to expectations that other central banks will now start to tighten up ultra-loose monetary policies just as the Fed may pause, but there may also be growing concerns about the stability of the Trump administration going forward.

While 85 percent of fund managers polled by Reuters around the world in July said they expect Trump to see out his four-year term, there may be concerns about how the government deals with issues related to the upcoming national debt ceiling debate.

There’s also some interest in the International Monetary Fund report from last Friday which said that the dollar’s real effective exchange rate remained 10-20 percent overvalued.

And yet other investors are beginning to link the ongoing dollar decline to a broader retreat from ‘safe assets’ worldwide as global growth picks up without inflation and financial volatility remains near historic lows.

The Swiss franc’s slide last week reinforces some of that, even if the relative stability of U.S. Treasuries is more of a puzzle in that regard.

If, as economists at the Bank for International Settlements suggest, the dollar is "the new Vix", or 'fear guage', due to its relfection of financial tensions around the world, then its ongoing decline is green flag for the global economy at large.

Further signs of a buoyant world economy were in evidence again overnight with Chinese July business surveys showing some acceleration of activity there and South Korean trade numbers impressive too.

Wall St stocks ended higher overnight, with the Dow Jones at a new record. Asia bourses were higher across the board and European stocks have opened smartly higher too. Brent crude continues to push toward $53 for the first time since May.

* Global July manufacturing PMI

* BRICS trade ministers meet in Shanghai, Tues/Weds

* SKorea July trade, inflation

* Europe corp events: BP, Natixis (LSE: 0IHK.L - news) , Intesa Sanpaolo (Amsterdam: IO6.AS - news) , Infineon (Xetra: 623100 - news) , Heidelberg Cement, Fresenius (Swiss: FRE-EUR.SW - news) , Heineken (LSE: 0O26.L - news) , Porsche, Taylor Wimpey (LSE: TW.L - news) , Fresnillo (Frankfurt: A0MVZE - news) , Direct Line (Other OTC: DIISD - news) , SDL (LSE: SDL.L - news) , Fidessa, Aeroflot

* Germany July jobless

* German 2-year schatz auction

* EZ Q2 flash GDP

* UK 10-year gilt auction

* UK July nationwide house prices

* US Q2 earnings: Xerox (Swiss: XRX.SW - news) , CME, Pfizer (NYSE: PFE - news)

* US June personal consumption, savings, PCE prices

* Brazil July trade, June industrial output (Editing by Andrew Heavens)