No data? No problem…or not! Thanks to fresh trade war concerns, Asian session forex traders flocked to safe havens like the franc and the yen.
- China’s markets out on holiday
- Japan’s household spending (y/y) up by 0.1% vs. 0.3% expected, 2.0% previous
- Japan’s cash earnings (y/y) up by 1.3% vs. 0.5% expected, 1.2% previous
- Japan’s leading indicators at 105.8% vs. 105.5% expected, 105.6% previous
Trump to heap MORE tariffs on China’s products?
Asian session traders took a U-turn from the U.S. session’s price action after Trump revealed that he had instructed U.S. trade officials to consider more tariffs for China’s products.
Trump wants officials to use Section 301 of the 1974 Trade Act – which accuses China of unfairly obtaining American intellectual property – to add another $100 billion worth of tariffs on top of the ones he had already planned over the last couple of days.
Trump also ordered his Agriculture Secretary to look into protecting the U.S. farming sector from further tariff damages.
The Donald repeated that he’s still willing to meet with China at the negotiating table but, for now, markets got spooked again.
- Nikkei is flat at 21,645
- Australia’s A SX 200 is down by 0.24% to 5,748.1
Commodity prices were a little more mixed
- Brent crude oil down by 0.80% to $67.98
- U.S. WTI is down by 0.85% to $63.16.
Major Market Mover(s):
CHF and JPY
A fresh infusion of risk aversion drove forex traders into the arms of low-yielders like the franc and yen.
USD/JPY is down by 12 pips (-0.11%) to 107.26;
AUD/JPY is down by 10 pips (-0.11%) to 82.39;
EUR/JPY is down by 14 pips (-0.10%) to 131.29, and
GBP/JPY is down by 20 pips (-0.13%) to 150.15.
CAD/CHF is down by 13 pips (-0.17%) to .7543;
EUR/CHF is down by 11 pips (-0.09%) to 1.1784, and
GBP/CHF is down by 13 pips (-0.10%) to 1.3476.
Watch Out For:
- 6:00 am GMT: Germany’s industrial production (0.2% expected, -0.1% previous)
- 6:45 am GMT: France’s government budget balance
- 6:45 am GMT: France’s trade balance (-5.3B CHF expected, -5.6B CHF previous)
- 7:00 am GMT: Swiss foreign currency reserves
- 8:10 am GMT: Euro Zone retail PMI
- 8:30 am GMT: U.K. housing equity withdrawal (q/q) (-6.7B GBP expected, -5.9B GBP previous)