US dollarThe renewed tensions between the US and China kept the risk tone broadly softer in the early trading this Thursday. The US President Trump signed an executive order on Wednesday, declaring a national emergency on information security and laying the ground for the US ban on China’s Huawei.

Therefore, forex today witnessed cautious trading, with the safe-have Yen keeping an upper edge over its American peer. USD/JPY dropped to lows near 109.30 levels, while EUR/USD rebounded to the 1.12 handle, supported by the reports that the US President Trump delayed the decision on the auto tariffs on the EU. GBP/USD faded the bounce to 1.2865 and treaded water near 1.2820 region ahead of the key meeting between the UK PM May and her party members that will decide her the fate as the UK Prime Minister.

The European macro calendar for today remains light, with nothing of note except for the second-tier Eurozone trade balance due at 09:00 GMT.

The focus shifts towards the NA calendar, with plenty of event risks, including the US Jobless Claims, Housing Starts, Building Permits and Philly Fed Manufacturing Index, all of which will be released at once at 12:30 GMT.

Apart from the macro releases, the speeches by the following central bankers will be also closely heard amid increasing risks to the global economy, in the wake of the US-China trade war:

  • 08:15 GMT: ECB’s Weidmann.
  • 12:30 GMT: ECB’s De Guindos.
  • 15:15 GMT: BOC’s Poloz.
  • 16:15 GMT: Fed’s Brainard.
  • 17:30 GMT: BOE’s Haskel.
  • 18:00 GMT: ECB’s Coeure.

Oil prices extended gains on Thursday amid tensions in the Middle East linked to stealth attacks on Saudi oil tankers and pipelines. Meanwhile, the EIA reported a surprise increase in U.S. stockpiles, but the inventory data was largely overshadowed by the situation in Middle East.

Gold futures were unfazed by ongoing trade concerns and kept its range below the $1,300 mark. A rally in the stock market and the U.S. dollar overnight, were cited as headwinds for gold, but losses were limited by heightened geopolitical tensions in the Middle East.