Asian stocks rose modestly, paring earlier gains as optimism that trade ties between Washington and Beijing were on the mend gave way to questions about the next phase of the diplomatic tit-for-tat between the two countries. Volatility has spread across global financial markets since U.S. President Donald Trump first slapped import tariffs on aluminium and steel products last month.
In currency markets EURUSD continued higher at 1.2358 not far from a two-week high of 1.2378 scaled overnight after European Central Bank policymaker Nowotny in an interview said that its 2.55-trillion-euro bond buying program would be wound down by the end of this. The euro has risen about 3 percent this year on expectations that the ECB would eventually normalize monetary policy and hike interest rates. USDJPY slipped by 0.5% to 107.30.
In Commodities, Oil prices remained elevated, after steep gains in the previous session, as the commodity markets eyed an escalation of Middle East tensions. U.S. crude futures were little changed at 65.52 a barrel after surging more than 3 percent on Tuesday on the back of the surge in risk appetite in the broader markets. Brent dipped 0.1 percent to 70.96 a barrel after jumping 3.5 percent on Tuesday, when it rose to 71.34, highest since December 2014.
Forex market economic is starting today with a focus on major economic data related to the economies of US mainly. The key economic event for today the CPI figure and the FOMC Meeting Minutes, which have the potential to move the US Dollar. There is also a plethora of economic data related to the economy of UK and Eurozone as Manufacturing Production m/m data will be release for UK and later ECB President Draghi will make a speech. Moderate to high volatility and price action is expected mainly for the US Dollar and the British Pound.