Dollar Slips

Asian stocks slid on Friday as reports of more chaos in the Trump administration tested investors’ nerves, already frayed by fears that U.S. tariffs could hurt the global economy and trigger a trade war.

Fears that the tariffs could disrupt synchronized global growth dwarfed recent strong economic data, including a fall in U.S. jobless claims. Any disruptions to the information sector will cost investors particularly dearly given the sector has been the main engine of the global share rally during the past decade. Political uncertainties are mounting in Japan, where Prime Minister Shinzo Abe is under pressure for suspicions of a cover-up in a controversial land sale.

In the currency market, rising risk aversion pushed the dollar lower against the safe haven USDJPY to 105.94 down 0.4 percent. EURUSD was little changed at 1.2303 EU, having slipped 0.5 percent the previous day. Subdued risk sentiment kept the dollar supported against riskier currencies, such as commodity-linked currencies and emerging market currencies.

In commodities Oil prices were little changed after ending choppy Thursday trade higher as the International Energy Agency said global oil demand is expected to pick up this year, but warned supply is growing at a faster pace. Gold prices were hovering near 2-week lows, but losses could be limited as fresh U.S. political woes weighed on the dollar and as fears of potential trade wars lingered.

The economic calendar comes with major economic events with high impact which should provide moderate to high volatility. Data related to the Euro, with the release of the Inflation Rate in Italy and in the Eurozone, and several economic releases related to the US economy.