Asian shares dithered on Wednesday and the dollar jumped to a near 1-1/2-year top as risk assets rowed back amid conflicting signals on prospects for de-escalating the Sino-U.S. trade dispute. Asian markets had slipped on Tuesday after U.S. President Donald Trump told the Wall Street Journal it was "highly unlikely" he would accept China's request to hold off on a planned increase in tariffs to 25 percent from 10 percent. However, White House economic adviser Larry Kudlow sought to brighten the mood by confirming a dinner powwow between Trump and his Chinese counterpart Xi Jinping at an coming G20 gathering in Argentina. He also held open the possibility that the two countries would reach a trade deal. It was still unclear whether the two sides had agreed on a formal agenda for the leaders' meeting after the G20 summit and Kudlow said there were no scheduled talks on the ground for their advisers. At the same time, a German magazine reported citing EU sources that Trump could impose tariffs on imported cars from next week, sending European auto stocks sharply lower. Investors will now turn attention to the speech on Wednesday of the Federal Reserve Chair Jerome Powell for further clues on how many more times the U.S. central bank is likely to raise interest rates.

In main currencies, EUR/USD lost the 1.1300 level, settling at 1.1295 after the final stab came by the hand of US President Trump, following the above mentioned German magazine report that he may start imposing tariffs on cars imports as soon as next week, to all countries except Canada and Mexico. Regarding GBP/USD, is traded as low as 1.2724, not far from November bottom at 1.2723, as Brexit disappointment keeps weighing on the Pound. Jeremy Corbyn, the leader of the Labour Party, tried to get support from the Parliament for a second Brexit referendum but didn't get enough support.

In main currencies, EUR/USD lost the 1.1300 level, settling at 1.1295 after the final stab came by the hand of US President Trump, following the above mentioned German magazine report that he may start imposing tariffs on cars imports as soon as next week, to all countries except Canada and Mexico. Regarding GBP/USD, is traded as low as 1.2724, not far from November bottom at 1.2723, as Brexit disappointment keeps weighing on the Pound. Jeremy Corbyn, the leader of the Labour Party, tried to get support from the Parliament for a second Brexit referendum but didn't get enough support.

For today the high impact news in the economic calendar include: Bank Stress Test Results (GBP), Prelim GDP q/q (USD) and of course Fed Chair Powell Speech.