Pip Diddy

It was quiet in the forex front, likely because traders were hunkering down for the NFP report. The session wasn’t a complete snooze fest, though, since the pound and Greenback both found some buyers.

Volatility was relatively light during the Asian session as traders prepare for the closely-watched NFP report from the U.S.

The arrest of Huawei’s CFO for allegedly violating trade sanctions was still the big story for the session as traders fretted this would reignite U.S.-China trade tensions despite the 90-day tariffs truce.

The pound and the yen battled for supremacy during the session, with the pound coming out on top. Trade-related concerns, meanwhile, continued to weigh on the comdolls, with the Aussie getting the worst of it.

Weak data, a possible flare-up in the U.S.-China trade tensions, and flatter U.S. bond yield curves all spooked Asian session traders to create a risk-averse trading environment.

U.S. markets were closed for a day of mourning for late President George H.W. Bush and economic releases were pushed a day later, so there wasn’t much action on dollar pairs. 

The pound caught a bid before the morning London session even rolled around and continued to attract buyers throughout the session. The Aussie and Kiwi, meanwhile, were nudged broadly lower.

The dollar extended its recovery on a bit of risk aversion in the markets. Meanwhile, the Aussie and Kiwi were dragged lower after Australia printed weaker than expected.

Just when it seemed that all is well in U.S.-China trade relations, Trump revived market jitters when he reminded about the possibility of more tariffs after their 90-day truce.

The ECJ’s Advocate General released an advisory opinion stating that the U.K. can unilaterally reverse Brexit, which caused the pound to skyrocket. The Kiwi, meanwhile, was the biggest loser of the session.