Forex Today: USD on the back foot in quiet Asia, eyes on Carney speech, Fed minutes and tariffs deadline

The calm before the storm emerged the underlying theme in Asia this Thursday, as markets brace for a fresh round of the US-Sino trade war, with the US set to impose tariffs on the Chinese goods tomorrow and China expected to retaliated on the US tariffs’ action.

Hence, the demand for the safe-havens, gold and the Yen, was on the rise while the risk assets such as oil, equities and the Aussie. However, the Kiwi held onto minor bids near 0.6770 levels while the Euro consolidated yesterday’s ECB headlines -led rally near mid-16s. The USD/JPY pair eased back towards the 200-DMA at 110.30 levels.

Main topics in Asia

The UK outlines new Brexit trade plan – Bloomberg

Trump on Twitter: OPEC needs to do something about oil prices

WTO – US trade war jeopardizes global growth

Goldman Sachs: Oil market to remain in deficit for the rest of the year

The US softens North Korea approach as Pompeo prepares for more nuclear talks – Reuters

Japanese government’s economic adviser calls for more fiscal stimulus

China Customs: China’s tariffs on US goods to take effect immediately after US tariffs on China goods kick in

IMF cuts German 2018 economic growth forecast to 2.2 percent

Key Focus ahead

Today’s EUR macro calendar is light data-wise, but the Bank of England (BOE) Governor Carney’s speech is expected to hog the limelight ahead of the speech by the ECB Governing Council member Jens Weidmann due at 11.15 GMT.

The main focus today remains the minutes of the FOMC June meeting, which offer fresh US dollar moves. In the meantime, the US ADP jobs report and ISM non-manufacturing PMI will keep the NA traders busy. Also, of note remains the US EIA crude inventories data due to be reported at 1500 GMT.

All eyes also remain on the looming Friday’s tariffs deadline, as China will implement tariffs on $34 bln worth of US goods from July 6 midnight Beijing time, i.e, 1600 GMT later today.

EUR/USD: Holds above 1.16, focus on Fed minutes

The  EUR/USD  sits well above 1.16, having built a nice  basing pattern  around 1.15 in the last few weeks and could gain altitude if the  Fed  minutes, due today, take some wind out of the hawkish June policy statement.

GBP/USD twisting into bullish territory ahead of BoE’s Carney speech, FOMC Meeting Minutes

The GBP bulls will be looking to keep the good vibes rolling with a scheduled speech by the Bank of England’s (BoE) Governor Mark Carney at 10:00 GMT, though the BoE chief is unlikely to deliver any new developments as he is giving a prepared speech in Newcastle.

FOMC Minutes in the limelight today – Nordea Markets

On Thursday, the minutes of the most recent FOMC meeting will be published and will be a key release for markets, according to analysts at Nordea Markets.

Key events coming up: eyes on FOMC minutes – TDS

Analysts at TD Securities, (TDS), noted the forthcoming  risk events to take note of.