The dollar slid in Asia and early European trade on Thursday, continuing its bearish bias from the previous day, weighed down by the ongoing possibility of a full-blown trade war with China, Europe, Canada and Mexico, not helped by the Mexico announcement that it will impose a $3 billion in tariffs on US imports in response to the latter’s triggering duties on steel and aluminium last week. The Eur remains underpinned by higher EU yields and the positive expectations ahead of next week’s ECB meeting following on from the hawkish comments from various ECB officials earlier in the week, The Aud$ reversed its gains from the previous session and is now back near 0.7600 after rejecting major trend resistance. Elsewhere, the metals were unchanged, while WTI, is higher after news that Venezuela is nearly a month behind on delivering crude to customers, causing a bottleneck and sending the price higher.
There is not a whole lot on the economic calendar for Friday and the session is likely to focus on the headlines coming from the G7 meeting in Quebec. The Meeting will follow though into Saturday, meaning that the final communique will not be available before the market re-opens on Monday – so be prepared for a weekend gap in the price action. As far as Friday is concerned, the China Trade Balance for May will be the Asian focus (exp +$32 bio Exports +10%, Imports +18.7%). The German Current Account and Trade Balance for April will be the European focus, while the US will look to the April Wholesale Inventories for guidance. Note that the China CPI (exp -0.1%mm, +3.8%yy) and PPI (1.8%yy) are due on Saturday. Have a good weekend.
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|OIL (WTI): 65.86|