FX Brief: NFP and Trump EU trade speech eyed

Fawad Razaqzada TradingCandles.com

FX update: Safe-haven JPY has remained the strongest major currency for the second day after President Donald Trump shocked the markets with a series of tweets that the US would impose 10% tariffs on $300 billion of Chinese goods that are not currently taxed. As a result, the safe haven yen was the strongest major currency on the day and the risk-sensitive Aussie was the weakest. The Dollar Index, which hit a new 2019 high before selling off yesterday, is lower again as investors wonder whether the escalation in US-China trade dispute may increase the odds for further Fed rate cuts after the central bank opted for a hawkish cut of 25 basis points in mid-week.
Stocks continue to struggle amid trade concerns while crude oil has managed to rebound after taking a nosedive the day before. Gold remains underpinned ahead of US jobs report.
Up next: The focus is turning to US jobs data, due for publication at 13:30 BST (08:30 ET). See our NFP report preview article. Then Trump will speak at 18:45 (13:45 ET) on Trade with European Union, in Washington DC. Will he announce EU auto tariffs?
Data recap: Beating expectations were retail sales from Australia (+0.4% m/m vs. +0.3% expected), Italy (1.9% m/m vs. 0.4%) and Eurozone (+1.1% m/m vs. +0.3%), while UK construction PMI (45.3 vs. 46.0), Swiss CPI (-0.5% vs. -0.4%) and Spanish Unemployment Change (-4.3K vs. -21.4K) all disappointed.

Author

Fawad Razaqzada

TradingCandles.com

Experience Fawad is an experienced analyst and economist having been involved in the financial markets since 2010 working for leading global FX, CFD and Spread Betting brokerages, most recently at FOREX.com and City Index.

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