The rumblings of a global trade war shook stock and currency markets after U.S. President Donald Trump announced long-promised tariffs on Chinese goods and Beijing pledged to fight any such war to the end. Investors fear that the U.S. measures could escalate into a trade war, with potentially dire consequences for the global economy.
In currencies the dollar plunged further against other currencies in Asia on Friday morning as U.S. tariffs imposed on Chinese imports and China’s retaliation measures rocked investors’ confidence and sent the dollar down. A lack of data on Friday left markets exposed to sentiment swings EURUSD gained 0.3 percent to 1.2335, extending its recovery from a near three-week low of 1.2240 touched earlier in the week. As equities took a beating, the yen, often sought in times of market turmoil, rallied against the dollar. USDJPY, turned down on the week to edge month low of 104.50.
In Commodities, oil prices recouped overnight losses after Saudi Arabia said that OPEC and Russian-led production curbs introduced in 2017 will need to be extended into 2019. U.S. crude futures) were up 1.1 percent at 64.99 per barrel after losing 1.3 percent on Thursday and Brent gained 0.9 percent to 69.53. Safe-haven spot gold rose to $1,339.12 an ounce, highest since March 7.
The economic calendar comes with major economic and has only economic data related to the economies of US and Canada, with a European Council Meeting and Euro Summit. Volatility should be moderate mainly for the US and the Canadian Dollar.