Trade worries continue to hurt risk, ASX touches 3-week lows. USDCAD hits 4-week highs

Trade worries continue to drive risk markets lower.

Overnight news that the US and China might now sign the phase-1 trade deal in 2019 and President Trump threatening tariff hikes maintained selling pressure on equity indexes. US indexes continued to retreat the Dow Jones lost 0.40% the Nasdaq 0.51%. Shares in Europe also felt the heat losing ground. The FTSE was the worst performer losing 0.88% but political worry is another factor in the UK atm. Local and Asian stocks have been sharply lower today with late fightback being seen atm. The Hang Seng, 1.63% lower. The ASX is 0.73% lower after seeing heavy losses in yesterday’s session.

Risk currencies had a lower to mixed night as trade and the FOMC minutes influenced the USD. Commodity currencies like the AUD and NZD had weaker nights, the NZD finished 0.21% lower while the AUD closed 0.37% lower. The EUR and GBP pared losses to finish flat. The USDCAD jumped to new 4-week highs overnight adding 0.28%.

Traders will be watching for further trade updates tonight and we have key news at 11:30 pm for the EUR, ECB Monetary Policy Meeting Accounts. This will be followed by BOC Governor Poloz speaking at 12:40 am

Please see below today’s market update video including a breakdown of the daily USDCAD and GBPUSD daily charts.