Asian shares crept marginally higher on Wednesday as optimism over the U.S.-Mexico trade deal was quickly clouded by caution ahead of a looming deadline on tariffs with China. In Washington, Canada’s main trade negotiator was in talks to preserve a three-nation North American Free Trade Agreement following Monday’s deal between the United States and Mexico. President Trump warned that he could proceed with Mexico alone and levy tariffs on Canada if it does not come on board with the revised trade terms.
The Turkish lira weakened further due to uncertainty about any progress regarding the rift between Turkey and the United States. The currency has lost about 40 percent of its value against the dollar this year due to a sell-off accelerated by a row with Washington over an American evangelical Christian pastor detained in Turkey on terrorism charges.
In currencies dollar slipped and dipped to near a four-week low overnight as markets remain concerned over the intensifying China-U.S. trade war.
In commodity markets, Gold was hovering around $1,203.58 after running into profit-taking at $1,214.28, its highest level since Aug. 10. Oil prices dithered either side of flat as falling supplies from Iran ahead of U.S. sanctions balanced rising production outside the Organization of the Petroleum Exporting Countries. Brent lost 10 cents to $75.85 a barrel, while U.S. crude fell 6 cents to $68.47.
Economic calendar today, contains data to be released which can move the forex market, such as the US GDP for the second quarter and the Core Personal Consumption Expenditures, the Consumer Confidence in Germany and Japan and the weekly US Crude Oil Stocks Change. Moderate to high volatility should be expected today especially for the US Dollar versus other currencies.