Strong U.S. jobs data offset worries that tariff wars between the United States and the rest of the world could drag on global economic growth, dragging Asian shares to their highest level in two-and-a-half-weeks.
Finance leaders of the closest U.S. allies issued a statement asking U.S. Treasury Secretary Steven Mnuchin to convey their “unanimous concern and disappointment” regarding the metal import tariffs to President Donald Trump administration’s, setting the tone for a heated G7 summit next week. China warned the United States on Sunday that any agreements reached on trade and business between the two countries will be void if Washington implements tariffs and other trade measures, as the two ended their latest round of talks in Beijing.
In Currencies, EURUSD was little changed at 1.1690, holding distance from Tuesdays 10-month lows as concerns over Italy political crisis have eased. USDJPY continues the uptrend and extending its rebound from 108.15 lows and currently trading near 110.00 handle.
In Commodities Gold prices were mixed during morning trade in Asia on Monday trading at 1291.50 .US Oil fell as low as $65 per barrel, touching their lowest level in almost two months. Rising U.S. crude production and a glut trapped inland due to a lack of pipeline capacity have pressured prices.
Brent crude oil futures dipped 0.16% at 76.67 for a second session, with prices coming under pressure from record U.S. output and expectations of higher OPEC supplies.
For today important economic releases include Construction PMI in UK. Moderate to high volatility is expected in the forex market for GBP and dollar pairs, after the strong US data on Friday related to the Nonfarm payrolls, Average Hourly Earnings and lower than expected Unemployment Rate.