The risk-off sentiment remained at full steam this Thursday, mainly in response to the reports of a potential delay in the US-China trade deal. Meanwhile, the US Congress approval of the Hong Kong bill also worsened the market mood further, as markets moved past the cautious FOMC minutes.
The risk-off action in the Asian equities, Wall Street futures and Treasury yields offered temporary respite to the US dollar while most majors traded in thin ranges.
Across the fx board, most majors bounced-off their session lows, with USD/JPY back above 108.50, while both the EUR/USD pair and Cable are trading better bid, although awaits fresh trading impetus ahead of the European Central Bank (ECB) minutes.
Amid a data-light EUR calendar, the key ECB’s latest meeting’s minutes, dropping in at 12:30 GMT will be closely eyed. In the meantime, the speeches from the ECB policymakers Mersch and De Guindos and the UK politics will grab some attention, as the main market driver is likely to remain the US-China trade and political developments.
In the NA session, a fresh batch of US second-tier data will be published at 13:30 GMT, including the weekly Jobless Claims and Philly Fed Manufacturing Index. At the same time, Fed’s Mester’s speech and BOC Governor Poloz speech are also due for release. Later in the session, all eyes will be on the US Existing Home Sales data and Eurozone Consumer Confidence figures dropping in at 15:00 GMT. Also, of note remains the speech by Fed’s Kashkari around 15:30 GMT.
Oil stops the recent recovery below 200-day EMA while taking rounds to $57.00 during the European morning on Thursday, as the trade and political jitters between the world’s top two economies are likely challenging global energy demand.
Gold prices lacked a clear direction around $1,470 levels. The market sentiment is still quite bearish as the metal is struggling despite US-China political tensions.