Asian stocks sagged while government bonds attracted safe-haven demand amid mounting investor concerns that growing trade tensions will hurt the global economy. Investors continued to be concerned that growing trade tensions could act as a drag on the global economy after U.S. President Donald Trump sought to impose tariffs on $60 billion of Chinese imports.
US dollar was pinned near one-week lows against some basket major currencies as concerns over trade protectionism and political turmoil in USA continued to weigh, a modest bounce overnight following three days of losses.
EURUSD edged up 0.05% to 1.2373 after being pulled back from a six-day high of 1.2413 when European Central Bank President Mario Draghi on Wednesday struck a dovish tone on monetary policy.
USDJPY slipped 0.35% to 105.960 after taking a hit the previous day on Trump’s firing of U.S. Secretary of State Rex Tillerson.
In commodities Oil prices held steady, supported by healthy global demand but capped by a relentless rise in U.S. production that is undermining efforts led by producer cartel OPEC to cut supplies and prop up markets. Gold prices held, hovering close to one-week highs as the previous session’s mixed U.S. data and political turmoil in Washington continued to pressure the dollar and support safe-haven demand.
The economic calendar comes with major economic events with high impact which should provide moderate to high volatility. The main economic event for today is the SNB Interest Rate Decision, ECB Lautenschlager Speech. There is also minor economic event coming from USA such as US Import and Export Prices, NY Empire State Manufacturing Index, Philadelphia Fed Manufacturing Index.