The forex market kicked-off the week on a cautious note, as risk-off remained the main theme in Asia, following reports that Trump is considering new curbs on the Chinese investment. As a result, the safe-haven Yen was the biggest gainer while the higher-yielding currencies such as the Aussie dollar and Kiwi suffered losses on global trade war fears. The Canadian dollar also remained weighed down by the oil-price weakness and negative market sentiment. Meanwhile, both the Euro and Sterling traded little changed amid subdued US dollar trades across the board, despite a sell-off in Treasury yields.
Among other related markets, the Asian stock markets traded mostly lower while both crude benchmarks dropped following the OPEC’s decision to increase oil supplies. Gold prices stalled its recovery mode and fell back below the 1270 mark.
Ahead in the economic calendar, in the Eurozone we will see the release of the German Ifo business surveys. Moving onto the U.S session, the US new home sales data will be reported amid other minority reports, which is expected to have little impact on the fx markets.