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  • Global trade environment remained downbeat thanks to on-going rift amid the US and China.
  • The UK PM May’s Brexit proposal triggered a fresh threat to her position.
  • PMIs and politics to become the key while looking forward.

With the growing trade tension between the world’s two largest economies and doubts over the UK PM May’s future leadership being in the limelight, Forex today remained largely risk-off during early Asian session on Thursday.

China’s refrain from announcing any retaliatory measures to the US signal to add five surveillance companies to the blacklist isn’t playing any major role in the eyes of the market players as the US Treasury Secretary Steven Mnuchin announced no Beijing visit for trade.

The UK political environment got much more eyeballs than any other news as Prime Minister Theresa May was under renewed pressure to resign as soon as early June. The reason could be her fresh Brexit proposal’s inability to please British lawmakers who are united against her.

Amid trade and politics, the minutes of the latest Federal Open Market Committee (FOMC) gained little attention even if policymakers held their “patience” intact and supported broader US Dollar (USD) strength.

Market sentiment was negatively affected as the global risk barometer 10-year treasury yield of the US slipped more than four basis points to 2.38%.

Wall Street also closed in red with Dow Jones at a loss of 100 points to -0.39%, S&P trimmed 0.28% and Nasdaq declined to 7,750 with -0.45% loss.

In addition to on-going political drama concerning the UK PM May’s departure and the US-China trade deal, not to forget tension between the US and Iran, investors might also follow purchasing manager index (PMI) numbers from Australia, Europe, and the US for fresh impulse.

Also, new home sales from the US and comments from a few FOMC members could add burden on market analysts to watch.

Key Notes

Wall Street ends the day modestly lower as trade conflict remains in focus

NZD/USD flashes fresh 2019 low as pessimism surrounding Antipodeans join strong USD

AUD/USD clings to sub-0.6900 area as trade negative news, lack of fresh catalysts in play

FOMC minutes: Patient approach to determining future adjustments to target range remains appropriate