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Global trade was the name of the game during the Asian session, as traders price in the U.S. negotiations with major trading partners Canada, China, and maybe even Japan.

  • Japan’s household spending (y/y) up by 0.1% vs. -0.9% expected, -1.2% previous
  • Japan’s average cash earnings (y/y) improves by 1.5% vs. 2.4% expected, 3.3% previous
  • Japan’s leading indicators down from 104.7% to 103.5%
  • Japan’s leading indicators down from 104.7% to 103.5%
  • AU home loans increase by 0.4% vs. -0.1% expected, -1.1% in June

Major Events/Reports:

Trade tensions take center stage

The bears are alive with the sound of…trade conflict. While we saw a couple of economic data printed today, traders were more interested in the U.S.’ trade negotiations.

The U.S. and Canadian trade reps did not reach a deal yesterday and word around the hood is that Canada isn’t expecting to shake hands this week. Luckily, Trump also shared his optimism that Canada will remain on the NAFTA negotiation table in a rally in Montana.

Meanwhile, traders are still at the edge of their seats wondering if Trump’s team will impose yuuuge tariffs on more Chinese goods.

See, the public comment period for the proposed tariffs on $200 billion worth of goods is up at 4:00 am GMT today many believe that the POTUS would want to get things going ASAP.

Adding to the tension is China recently sharing that it would roll out “necessary retaliatory measures” if the U.S. implements said additional tariffs. Yikes!

But there’s a new player in the game! Japan might be dragged into the trade war after all.

In a phone call to a Wall Street Journal columnist, Trump reportedly lauded good relationship with Japan’s leadership but cautioned that

“Of course that will end as soon as I tell them how much they have to pay.”

Duhn duhn duhn.

  • Nikkei is down by 1.11% to 22,237.4
  • A SX 200 is down by 0.13% to 6,121.8
  • Shanghai index is down by 0.13% to 2,688.133
  • Hang Seng is down by 0.86% to 26,744.1

Commodity prices were a little more mixed, with gold taking advantage of the overall risk aversion while the oil benchmarks took a breather from their gains from the previous trading session.

  • Gold is up by 0.04% to $1,200.35
  • Brent crude oil is down by 0.35% to $76.36
  • U.S. WTI is down by 0.21% to $67.72

Major Market Mover(s):


Not surprisingly, the Aussie took the heaviest hits from concerns over the U.S.’ trade relationships with China and Japan.

AUD/USD is down by 34 pips (-0.47%) to .7161; AUD/JPY is down by 51 pips (-0.64%) to 79.18; AUD/CAD is down by 53 pips (-0.56%) to .9403; AUD/CHF is down by 32 pips (-0.46%) to .6913; EUR/AUD is up by 86 pips (+0.54%) to 1.6231, and GBP/AUD is up by 95 pips (+0.53%) to 1.8053.


Loonie bulls took charge after the lack of results from the U.S. and Canadian reps were overshadowed by Trump sharing that “We’re going to make a fairer deal with Canada” in a rally in Montana.

USD/CAD is down by 12 pips (-0.18%) to 1.3130; EUR/CAD is down by 11 pips (-0.07%) to 1.5262; GBP/CAD is down by 14 pips (-0.08%) to 1.6975, and CAD/CHF is up by 7 pips (+0.09%) to .7351.


All lower-yielding currencies made pips during the session, but it was the yen that took home the crown today.

USD/JPY is down by 17 pips (-0.16%) to 110.57; EUR/JPY is down by 19 pips (-0.14%) to 128.53; CHF/JPY is down by 19 pips (-0.16%) to 114.55; GBP/JPY is down by 23 pips (-0.16%) to 142.95, and NZD/JPY is down by 27 pips (-0.37%) to 72.69.

Watch Out For:

  • 5:45 am GMT: Switzerland’s unemployment rate to remain at 2.6%?
  • 6:00 am GMT: Germany’s industrial production (0.2% expected, -0.9% previous)
  • 6:00 am GMT: Germany’s industrial production (0.2% expected, -0.9% previous)
  • 6:45 am GMT: France’s government budget balance
  • 6:45 am GMT: France’s industrial production (0.2% expected, 0.6% previous)
  • 6:45 am GMT: France’s trade balance (-5.7B EUR expected, -6.2B EUR previous)
  • 7:00 am GMT: Switzerland’s foreign currency reserves
  • 7:30 am GMT: U.K.’s Halifax house price index (-0.1% expected, 1.4% previous)
  • 8:00 am GMT: Italy’s retail sales (0.2% expected, -0.2% previous)
  • 8:30 am GMT: U.K.’s consumer inflation expectations
  • 9:00 am GMT: Euro Zone revised GDP (q/q) estimated to remain at 0.4%