Asian stock markets fell on Friday despite signs of greater government support for firms in China, with global trade tensions clouding the outlook for demand. The U.S. dollar was near its highest levels in 13 months, while concerns over disputes with Washington pushed the Turkish lira to record lows and piled pressure on the Russian rouble. U.S. President Donald Trump is pushing Tokyo to sign a free-trade agreement and has threatened to impose higher tariffs on auto imports including those from Japan. The euro slumped with emerging-market currencies and stocks declined amid concern Turkey’s problems are spilling over. The Turkish lira hit a fresh record low amid a souring of diplomatic relations with the U.S.The common currency sank, and the dollar extended gains as the Financial Times reported that the European Central Bank was concerned about the Turkish exposure of some banks. Traders sought out traditional havens in U.S. Treasuries and the yen. Turkish investors are looking to President Recep Tayyip Erdogan to calm their nerves when he speaks Friday for the first time since the latest selloff began. Other emerging market currencies fell in sympathy with the lira, and U.S. and European equity futures fell alongside Asian bourses.
In currencies, EUR/USD remained relatively steady at 1.1610. GBPUSD skidded to its lowest against the dollar and euro in almost a year as fears grew Britain might leave the EU without a deal on trade with Brussels. USDJPY eased to 110.95 yen after stretching as high as 111.44.
In commodities, crude oil was flat at $66.82 a barrel, while Brent crude was less than 0.1 percent higher at $72.11 per barrel. Spot gold extended losses retrieving back to $1208 per ounce.
For today key economic releases are coming from USA, UK, Canada. Manufacturing Production m/m and Prelim GDP q/q will be released for GBP. CPI and Core CPI will be released for US economy and Employment change and Unemployment rate for Canada., with moderate to high volatility expected on USD, GBP and CAD currency pairs.