Forex Today: Safe-havens lifted by trade anxiety, Eurozone CPI, UK GDP in focus
The Asian traders remained jittery ahead of the highly-anticipated Trump-Xi meeting at the G20 that helped the safe-havens such as Gold and the Yen recover ground. It’s widely expected that both countries are unlikely to reach a trade deal. But the US could delay the tariffs on the Chinese goods that may help ease some trade war fears and reduce the risks of a global economic slowdown.
The USD/JPY pair slipped to near 107.55 region while the AUD/USD pair extended the upside beyond the 0.70 handle, benefiting from the bounce in gold prices. The yellow metal staged a solid comeback and regained the 1420 level. Meanwhile, the US dollar traded virtually flat across its main competitors. The Treasury yields attempted a tepid bounce, leaving the EUR/USD and the Cable on the defensive. The Kiwi clung to 0.67 handle amid negative oil prices and risk-aversion in the Asian equities. The Swiss franc cheered unnerved markets while the USD/CAD pair traded modestly flat around the 1.3100 level.
Main Topics in Asia
Australia: Housing credit growth at a new low – ANZ
US House passes Senate’s $4.6 billion emergency border aid bill amid Democratic divisions – CNBC
UK PM Candidate Boris Johnson preparing emergency budget for no-deal Brexit – The UK Times
WTI: Modestly flat around $59.00, all eyes on G20, geopolitics
Japan's data dump sees CPI higher by 0.1% and Unemployment in-line
President Trump: Will talk trade with India's Modi and Japan's Abe
President Trump: Absolutely no time pressure on Iran issue
US Pres. Trump: Trade between the US and Germany has reached new levels
US Pres. Trump: We are seeking an open, fair and market based digital economy
EU’s Juncker: Europe committed to upholding multilateral rules-based system
EU's Tusk: We are committed to Iran nuclear deal
Gold technical analysis: 4-HR stochastics are turning positive
China's Xi: Gulf region is at crossroads of war and peace
China's Xi: BRICS should fight against one sided sanctions
White House: Trump and Merkel discussed China, Iran, Libya, Ukraine and global trade
Asian stocks dip on caution ahead of Trump-Xi meeting
Japan PM Abe: Downside risks to global economy prevail
Key Focus Ahead
We have a busy Friday macro calendar amid dozens of headlines crossing the wires, as the G20 gets underway. Markets await the UK final Q1 GDP data due at 0830 GMT ahead of the flash estimate of the June Eurozone Consumer Price Index (CPI) due at 0900 GMT. Meanwhile, the German Import Prices, Spanish GDP and Italian CPI figures will also keep the EUR traders busy.
In the NA session, the US Core Personal Consumption Expenditure (PCE) – Price Index data will hog the limelight at 1230 GMT alongside the releases of the Canadian April GDP report and industrial figures. Later at 1400 GMT, the US Michigan Consumer Sentiment Index data will be reported, soon followed by the Bank of Canada (BOC) Business Outlook Survey. In the American afternoon, the Baker Hughes oil rigs count data will drop in at 1700 GMT while the FOMC member Daly’s speech will release at 1930 GMT.
However, all eyes remain on Saturday’s key Trump-Xi meeting on the trade spat, due at 0230 GMT, for fresh cues on the market sentiment.
EUR/USD: Market indecisive ahead of G-20
The EUR/USD market is lacking a clear directional bias ahead of the crucial US-China trade talks at the G-20 meeting, which could influence markets' expectations for an interest rate cut by the US Federal Reserve (Fed).
GBP/USD: 21-DMA limits immediate declines ahead of UK GDP, trade talks
Not only fears of no-deal Brexit but sluggish consumer confidence also weigh on the GBP/USD as it wavers near 1.2670 ahead of the London open. Investors now await the final reading of the first quarter UK GDP and G20 headlines for fresh impulse.
UK GDP Preview: Even a minor disappointment may weigh heavily on GBP/USD
The final release of first-quarter Gross Domestic Product in the UK may be the last chance to see upbeat growth in some time. According to the previous data, the British economy grew by 0.5% on a quarterly basis – a robust rate by all means.
US PCE Price Index Preview: It’s not deflation you know
The overall PCE price increase is expected to fall to 0.1% in May from 0.3% in April. Annual inflation is predicted to be stable at 1.5%. The core PCE monthly rate is forecast to be unchanged at 0.2% as is the yearly rate at 1.6%.