Trade talks took center stage during the Asian session, as traders priced in the U.S.-Mexico trade deal and a promising phone call between Trump and Merkel.
- BOJ’s core CPI (y/y) climbs from 0.4% to 0.5% vs. 0.3% expected in July
- Asian markets also cheer U.S.-Mexico trade deal
- U.S. announces government aid to tariff-stricken farmers
Asian markets play catch-up
Unless you were too busy playing World of Warcraft: Battle for Azeroth, then you should know that markets were shook in the late U.S. session after the U.S. and Mexico finally inked a trade deal.
You can my U.S. session update for the deets, but for now you should know that the Asian bourses – much like their U.S. counterparts – cheered the development.
- Nikkei is up by 0.47% to 22,907.0
- A SX 200 is up by 0.37% to 6,317.8
- Shanghai index is up by 0.01% to 2,780.976
- Hang Seng is up by 0.24% to 28,340.2
Commodities missed the risk appetite train, however. Gold dipped on a bit of dollar strength, while crude oil prices took a breather from its previous sessions’ gains and dipped a bit lower.
- Gold is up down 0.15% to $1,209.23
- Brent crude oil is down by 0.08% to $76.18
- U.S. WTI is down by 0.09% to $68.83
Trump and Merkel convo
A few hours ago, the White House released a statement revealing that President Donald Trump and German Chancellor Angela Merkel “strongly supported ongoing discussions between Washington and Brussels to remove barriers to a deeper trading relationship” over a phone call.
Trump and Merkel reportedly discussed other issues such as Syria and Ukraine, but it was the possibility of better trade relations that fanned the fire from the previous session’s rallies.
Major Market Mover(s):
Aussie bulls didn’t appreciate the U.S.-Mexico trade deal. For one thing, Trump shared in the same presser that he’s seenzoning China’s negotiation attempts because “it’s just not the right time to talk right now.”
It also didn’t help that copper prices were set to fall for its third out of four sessions as the U.S.-China trade war story played on.
AUD/USD is down by 20 pips (-0.27%) to .7329; AUD/JPY is down by 5 pips (-0.06%) to 81.59; AUD/CAD is down by 19 pips (-0.20%) to .9511; EUR/AUD is up by 41 pips (+0.26%) to 1.5925, AUD/CHF is down by 14 pips (-0.20%) to .7187, and GBP/AUD is up by 25 pips (+0.14%) to 1.7561
Not surprisingly, the possibility of better U.S.-EU trade relations brought the bulls to the euro’s yard.
EUR/JPY is up by 23 pips (+0.18%) to 129.94; EUR/GBP is up by 11 pips (+0.12%) to .9068; EUR/NZD is up by 29 pips (+0.16%) to 1.7460, and EUR/CHF is up by 5 pips (+0.05%) to 1.1445.
The Greenback continued to inch higher against its major counterparts after the U.S. and Mexico announced a trade deal.
USD/JPY is up by 25 pips (+0.22%) to 111.32; GBP/USD is down by 19 pips (-0.15%) to 1.2872; USD/CAD is up by 10 pips (+0.08%) to 1.2977, and USD/CHF is up by 8 pips (+0.09%) to .9805.
Watch Out For:
- 6:45 am GMT: France’s consumer confidence expected to remain at 97.0 in August
- 8:00 am GMT: Euro Zone’s private sector loans (y/y) (3.0% expected, 2.9% previous)