Global stocksGlobal stocks and the dollar slumped on Wednesday after a key advocate for free trade in the White House resigned, fanning fears that President Donald Trump will proceed with tariffs and risk a trade war. Shortly after the Cohn announcement, the White House said it’s considering clamping down on Chinese investments in the U.S. and imposing tariffs on a broad range of its imports. That comes as the administration prepares to impose steep tariffs on steel and aluminum, which Cohn had opposed. Gold was trading positively overnight on the back of the softer USD trend BS continues to perform exceptionally well on that narrative. But prices will remain firmly supported on the tariff tail risks from Cohn departure as the tariff gambit hits the market again with blunt force.

The USD was lower against most major pairs as trade fears receded and sparked a sell off of the American currency. The ADP will mark the first release of February employment data in the US at 13:15GMT on later today. Strong gains are expected from private payrolls with the market looking ahead to the U.S. non-farm payrolls (NFP) on Friday with a special attention paid to the wages component seeking signs of higher inflation. The Bank of Canada (BoC) will release its rate statement at 15:00GMT with no press conference to follow the release of the statement. Weekly crude inventories will be published at 15:30GMT with the results guiding prices that are caught in a tight trading range.