No major reports were printed, so there was little to stop Asian session traders from extending the previous sessions’ themes.
- Germany’s PPI up by 0.2% vs. 0.0% expected and previous
- Asian markets hit by risk aversion
More risk aversion
With no major economic report to chew on, Asian session traders had time to price in the previous session’s brouhaha.
If you recall, market players scrambled towards safe havens such as the yen and the franc when police reported an attack in one of the more populated areas of Barcelona.
But instead of subsiding, Spain had to deal with a second encounter, this one in Cambrils, Spain where five suspects were killed to prevent a vehicle attack.
Police say the situation in Cambrils is now under control while they’re still searching for the driver of the van used in the Barcelona attack.
Whether it was an extension of the previous sessions’ risk aversion mood or profit-taking ahead of the weekend, the Asian bourses ended the day in the red:
- Nikkei is down by 1.00% to 19,505.50,
- Australia’s A SX 200 is down by 0.70% to 5,738.70,
- Shanghai index is down by 0.12% to 11,602.61, and
- Hang Seng is down by 0.75% to 27,138.00.
Trump to nix yet-to-be-formed infrastructure council?
Word through the forex grapevine is that the Donald won’t be pushing through with a plan to form an Advisory Council on Infrastructure.
Citing “a person familiar with the matter,” Bloomberg reported that Trump had already tapped New York developers and friends Richard LeFrak and Steven Roth to lead the infrastructure panel established on July 19.
The council would have had members from real estate, labor, and other sectors and would have advised the POTUS regarding funding, support, and delivery of his infrastructure projects.
Major Market Mover(s):
The Greenback continued to take hits from its counterparts as more traders cast doubts on the Trump administration’s capability to push through with its infrastructure plans.
GBP/USD is up by 16 pips (+0.12%) to 1.2888,
USD/JPY is 12 pips (-0.11%) to 109.38,
AUD/USD is up by 6 pips (+0.08%) to .7896, and
USD/CAD is down by 13 pips (-0.10%) to 1.2665.
Watch Out For:
- 9:00 am GMT: Euro Zone current account (27.3B EUR expected, 30.1B EUR previous)