Tuesday’s session was a mixed bag so far, as a sense of caution prevailed amid renewed trade concerns. Asian stocks slipped following the overnight Wall Street decline after US President Trump announced fresh tariffs on steel from Brazil and Argentina.
The US dollar embarked upon the road to recovery vs. its main competitors with USD/JPY benefitting from the recovery, an uptick in S&P 500 futures and the Treasury yields rebound. The spot kept its range around 109.15 region, reversing a dip to four-day lows of 108.93. Amongst the European currencies, EUR/USD consolidated the recent upsurge near 1.1070 levels while GBP/USD traded little changed below 1.2950 ahead of the UK Construction PMI release.
The EUR macro calendar this Tuesday is a thin-showing, in absence of first-tier economic data releases. Therefore, the UK Construction PMI and Eurozone Producer Price Index (PPI) will keep the traders busy in the session ahead Meanwhile, the UK political drama and trade-related headlines will continue to play out.
The NA session also lacks relevant macro news from both the US and Canada. However, New Zealand’s fortnightly dairy auction results due around 14:30 GMT, ECB Governing Council member Coeure’s speech and weekly US Crude Stocks data from the American Petroleum Institute (API) will be closely eyed.
Oil has been inching higher in recent trade, advancing 0.23% on the session from a low of $55.91bbls to a high of $56.18bbls in WTI. However, the moves do not reflect the bigger picture considering the slide from the proximity of the $59 handle at the end of last month.
Gold bears return as US dollar attempts recovery from weekly lows. An uptick in Treasury yields and US equity futures also weigh on gold, as focus shifts to trade developments and risk trends for fresh impetus.
Trump’s tariffs weigh on USD – Focus on UK PMI and Trade
Published on 2019-12-03 09:35
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