The calm before the storm emerged the underlying theme in Asia this Thursday, as markets brace for a fresh round of the US-Sino trade war, with the US set to impose tariffs on the Chinese goods tomorrow and China expected to retaliated on the US tariffs’ action.
Hence, the demand for the safe-havens, gold and the Yen, was on the rise while the risk assets such as oil, equities and the Aussie. However, the Kiwi held onto minor bids near 0.6770 levels while the Euro consolidated yesterday’s ECB headlines –led rally near mid-16s. The USD/JPY pair eased back towards the 200-DMA at 110.30 levels.
Main topics in Asia
The UK outlines new Brexit trade plan - Bloomberg
Trump on Twitter: OPEC needs to do something about oil prices
WTO - US trade war jeopardizes global growth
Goldman Sachs: Oil market to remain in deficit for the rest of the year
The US softens North Korea approach as Pompeo prepares for more nuclear talks - Reuters
Japanese government's economic adviser calls for more fiscal stimulus
IMF cuts German 2018 economic growth forecast to 2.2 percent
Key Focus ahead
Today’s EUR macro calendar is light data-wise, but the Bank of England (BOE) Governor Carney’s speech is expected to hog the limelight ahead of the speech by the ECB Governing Council member Jens Weidmann due at 11.15 GMT.
The main focus today remains the minutes of the FOMC June meeting, which offer fresh US dollar moves. In the meantime, the US ADP jobs report and ISM non-manufacturing PMI will keep the NA traders busy. Also, of note remains the US EIA crude inventories data due to be reported at 1500 GMT.
All eyes also remain on the looming Friday’s tariffs deadline, as China will implement tariffs on $34 bln worth of US goods from July 6 midnight Beijing time, i.e, 1600 GMT later today.
EUR/USD: Holds above 1.16, focus on Fed minutes
The EUR/USD sits well above 1.16, having built a nice basing pattern around 1.15 in the last few weeks and could gain altitude if the Fed minutes, due today, take some wind out of the hawkish June policy statement.
GBP/USD twisting into bullish territory ahead of BoE's Carney speech, FOMC Meeting Minutes
The GBP bulls will be looking to keep the good vibes rolling with a scheduled speech by the Bank of England's (BoE) Governor Mark Carney at 10:00 GMT, though the BoE chief is unlikely to deliver any new developments as he is giving a prepared speech in Newcastle.
FOMC Minutes in the limelight today - Nordea Markets
On Thursday, the minutes of the most recent FOMC meeting will be published and will be a key release for markets, according to analysts at Nordea Markets.
Key events coming up: eyes on FOMC minutes - TDS
Analysts at TD Securities, (TDS), noted the forthcoming risk events to take note of.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Bank of Japan's predicament: The BOJ is trapped
In this special edition of TradeGATEHub Live Trading, we're joined by guest speaker Tavi @TaviCosta, who shares his insights on the Bank of Japan's current predicament, stating, 'The BOJ is Trapped.'