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A bit of risk-taking returned during the New York trading session, allowing the Canadian dollar to hold on to its gains and forcing the yen to fall back.

The euro and the pound were also on the losing end, likely due to mostly downbeat data from the previous session.

  • U.S. IBD/TIPP Economic Optimism index down from 55.6 to 52.6 vs. 55.2 consensus
  • U.S. total vehicle sales increased from 17.1M to 17.5M vs. 16.9M forecast
  • New Zealand GDT auction yielded 0.6% fall in dairy prices
  • U.S. President Trump held conference with Baltic states leaders
  • Trump: U.S. has a problem with China over trade deficit

Major Events/Reports:

Trump makes more trade jabs

U.S. President Trump met with leaders from Estonia, Latvia and Lithuania to reassure that he plans on having a good relationship with Russian President Putin.

However, he did also say that “nobody’s been tougher on Russia than Donald Trump.”

In the same meeting, Trump mentioned that he has great respect for Chinese President Xi Jinping but warned that the U.S. won’t back down from imposing higher tariffs on their products. He clarified:

“We have a problem with China. They’ve created a trade deficit.”

Keep in mind that the White House is due to release a list of Chinese companies to be subject to higher trade duties after China published their own list of U.S. goods to be charged with increased tariffs earlier this week.

Risk-taking returns

U.S. session traders seem to have woken up on the right of the bed today as stocks opened higher and were able to sustain their rallies until the close, led mostly by the strong rebound in Amazon shares.

  • Dow 30 index is up 389.17 points to 24,033.36 (+1.65%)
  • S&P 500 index is up 33.64 points to 2,615.52 (+1.30%)
  • Nasdaq is up 71.16 points to 6,491.28 (+1.04%)

Gold and silver returned their previous safe-haven gains while crude oil was lifted by expectations of a draw in stockpiles. Analysts also attributed the gains to Russia’s willingness to create a joint organization between OPEC and non-OPEC producers after the output deal expires.

  • Gold is down to $1,336.10 per troy ounce (-0.80%)
  • Silver is down to $16.400 per troy ounce (-1.63%)
  • WTI crude oil is up to $63.53 per barrel (+0.83%)
  • Brent crude oil is up to $68.13 per barrel (+0.74%)

Futures are pointing to a mixed open, though, as it remains to be seen whether the risk rallies can be extended or not.

  • Nikkei 225 index futures are up 0.23%
  • S&P ASX 200 index futures are down 0.05%
  • China A50 index futures are up 0.43%

Major Market Mover(s):

CAD

The Loonie held on to its winnings from earlier on, possibly buoyed by higher crude oil prices and positive NAFTA updates.

EUR/CAD is down 175 pips to 1.5710 (-1.11%), USD/CAD fell to 1.2808 (-0.86%), GBP/CAD tumbled 136 pips to the 1.8000 mark (-0.75%), and AUD/CAD is down to .9836 (-0.57%)

JPY

The yen had a rough one as it retreated against its higher-yielding rivals, as well as the U.S. dollar.

CAD/JPY is up 127 pips to 83.25 (+1.55%), NZD/JPY is up to 77.32 (+1.26%), AUD/JPY is up to 81.91 (+0.95%), and USD/JPY is up to 106.65 (+0.72%)

Watch Out For:

  • 2:30 am GMT: Australia retail sales m/m (0.3% expected, 0.1% previous)
  • 2:30 am GMT: Australia building approvals (-5.1% expected, +17.1% previous)
  • 2:45 am GMT: Chinese Caixin services PMI (rise from 54.2 to 54.5 expected)