The central bankers’ speeches and economic releases played a second fiddle to the risk-off market condition that dominated the Asian trades this Wednesday, after the US Chief Economic Adviser Gary Cohn, a proponent of free-market trade, announced his resignation overnight. Cohn’s departure re-ignited worries over Trump’s protectionism and potential trade war, which in turn fuelled risk-off sentiment across the financial markets in Asia.
Among the Asia-pac currencies, the Yen was the biggest beneficiary of the risk-aversion while the Aussie faced a double-whammy on the back of the Australian Q4 GDP miss and reduced appetite for higher-yielding assets. The Kiwi too followed suit amid tumbling Asian stocks and oil prices. Meanwhile, the US dollar remained broadly on the back foot on protectionism fears while investors digest the speeches by the FOMC members Brainard and Kaplan.
Main topics in Asia
Aussie GDP Q4 2017 misses expectations
Australian GDP data has missed expectations and disappointed 0.4% Q/Q vs 0.6% expected and prior 0.6%. For the year, the data arrived at 2.4% vs 2.5% expected and prior 2.8 %.
RBA's Lowe: would be helpful to have lower AUD/USD
After hawkish comments from Philip Lowe, who is the Reserve Bank of Australia's Governor, speaking at the Australian Financial Review Business Summit in Sydney around the topic of "The Changing Nature of Investment" …
Whitehouse Gary Cohn is planning to resign, risk off markets back in play
Due to the opposition on tariffs on steel that Trump proposed last week, Whitehouse Gary Cohn is planning to resign.
Fed's Brainard: gradual US Rate hikes likely appropriate
Fed's Brainard has been crossing the wires with key comments …
Fed’s Kaplan: Base case is approximately 3 Fed rate hikes in 2018
More comments hitting the wires from the Dallas Fed President Kaplan, this time speaking on the Fed’s rate hike prospects for this year.
Fed’s Kaplan: It’s too soon to change forecast based on tariffs
BoJ Dep Gov Nominee Wakatabe: Risks associated to ending stimulus too soon
BOJ's Amamiya - inflation is moving towards the target
Key Focus ahead
There are no first-tier macro news on the cards from the Euroland today, and hence, attention turns towards the second-liner UK Halifax HPI and Eurozone revised GDP releases. Meanwhile, Fedspeaks (speeches by Fed’s Bostic and Dudley) will fill in the pre-US session alongside the release of the key US ADP jobs report.
In the NA session, the trade figures from both Canada and the US will be reported ahead of the main risk event for today – the BOC interest rate decision, which will have a major impact on the CAD. Also, of relevance remains the US EIA crude inventory report for further trading impetus on the oil-linked Loonie.
EUR/USD clocks two-week high, options regain bull bias
EUR/USD rose to 1.2429 in Asia - the highest level since Feb. 19 after Gary Cohn, advocate for free trade in the White House, announced his resignation boosting fears of a trade war.
GBP/USD looking to reclaim 1.39 handle in London session
The pair climbed steadily in Tuesday's trading as overall risk appetite took a swing upwards, and market sentiment looks set to continue to be the main driver for the GBP/USD with only low- and mid-tier data on the offering throughout the week.
Dollar Awaits US Jobs Data as Trade Uncertainty Remains
The ADP will mark the first release of February employment data in the US at 8:15 am EST on Wednesday, March 7. Strong gains are expected from private payrolls with the market looking ahead to the U.S. non-farm payrolls (NFP) on Friday.
Trump says will choose new chief economic advisor soon
"Will be making a decision soon on the appointment of new Chief Economic Advisor. Many people wanting the job - will choose wisely!"
KEY EVENTS:
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
Gold trades around $3,050, higher highs ahead
Relentless tariff jitters, coupled with renewed weakness in the US Dollar, have propelled gold prices back toward record territory—hovering just above $3,060 per troy ounce.
EUR/USD sticks to the bid bias, still below 1.0800
The renewed selling pressure in the US Dollar continues to underpin the improvement in the risk complex and motivates EUR/USD to reverse part of the multi-day decline with the next target at 1.0800 the figure.
GBP/USD looks firm near 1.2950, Dollar retreats
The selling pressure on the Greenback motivates GBP/USD to regain upside traction, leave behind Wednesday's hiccup and refocus on the 1.2950 region and beyond on Thursday.
Crypto Morning: BlackRock spends $107 million on Bitcoin, stablecoin launches, Shiba Inu boss still offline
BlackRock, a giant with $11.5 trillion in assets under management, spent $107.9 million to fund its BTC purchase on Wednesday. The move is consistent with demand for BTC among institutional investors.
US: Trump's 'Liberation day' – What to expect?
Trump has so far enacted tariff changes that have lifted the trade-weighted average tariff rate on all US imports by around 5.5-6.0%-points. While re-rerouting of trade will decrease the effectiveness of tariffs over time, the current level is already close to the highest since the second world war.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.