A major turnaround in the risk sentiment was witnessed across the financial markets in Asia, as risk-off seeped back amid a round of fresh threats by the Trump administration to slap additional tariffs on $ 200 billion worth of the Chinese imports. The risk/ higher-yielding assets took a beating across the board. However, the safe-havens such as the Yen and gold failed to benefit from risk-aversion while the US dollar was broadly underpinned. Amongst the Asia-pac currencies, the Aussie was the biggest loser, having faced a double whammy from the sell-off on copper prices and risk-off in the Asian equities, as China stocks tumbled 2%. The Kiwi followed suit and attacked the 0.6800 support amid risk-off fuelled oil-price weakness. Meanwhile. The USD/JPY pair bounced-off a dip to 110.80 levels and regained the 111 handle, despite the selling in Treasury yields, as the USD bulls managed to retain control. Main topics in Asia US Lighthizer: Further tariffs on $200 billion of Chinese imports – Reuters As reported by Reuters, US Trade Representative Robert Lighthizer formally announced that the US will be seeking further tariffs on $200 billion USD of Chinese imported goods. Asian stocks back in the red, China indexes down 2% on tariff angst Asian stocks are back on the defensive, with equity indexes sliding steeply into red territory after the US announced plans to pile further tariffs on China. Oil falls over a percent on trade tariffs, WTI nearing $73.00 Crude oil is seeing declines with WTI knocking down to 73.40 as trade concerns take oil down the charts after a brief bullish period. Trump: ‘Can’t say if Putin is friend or foe’ – Reuters Speaking to reporters at the White House before leaving on the week-long trip, the US President Trump expressed his take on the meeting with the Russian President Putin. China’s Commerce Ministry: China would be forced to hit back against the new US tariffs More comments are crossing the wires from China’s Commerce Ministry, as they respond to the new tariffs threat from the US. Key Focus ahead Heading into Europe, the economic calendar remains data-light, with the only UK NIESR GDP Estimate due on the cards. However, the speeches by the European Central Bank (ECB) policymakers will keep the traders busy, with President Draghi’s speech the main highlight. 0700 GMT – ECB Draghi’s speech 0730 GMT – ECB Chief Economist Praet’s speech 1200 GMT- ECB Mersch’s speech In the NA session, the US producers price index (PPI) will be reported at 1230 GMT, followed by the Bank of Canada’s (BOC) interest rate decision and monetary policy statement due to be announced at 1400 GMT. The BOC Governor P0loz’s speech will hog the limelight at the presser conference, as markets await fresh hints on the Canadian interest rates outlook. Also, the EIA crude stockpiles data will remain in focus ahead of the speeches by the FOMC member Bostic and Williams that will wrap up an eventful NA calendar. EUR/USD: Flirting with confluence of key MAs ahead of Draghi speech The cross driven sell-off in EUR/USD could gather pace if the European equities feel the pull of gravity in response to trade tensions. Further, the EUR pairs could turn volatile during the European Central Bank (ECB) President Mario Draghi’s speech. GBP/USD circling 1.3250, churning on Brexit concerns, revamped trade concerns Wednesday has a thin schedule set for the GBP, with only the NEISR GDP Estimate for the three months into June expected at some point through the day, and forecast at 0.3% (last 0.2%). Bank of Canada is widely expected to deliver a 25b – TDS Analysts at TD Securities explained that the Bank of Canada is widely expected to deliver a 25bp hike. US CPI Preview: Onward and Upward CPI likely rose a trend-like 0.2 percent in June amid steady gains in the core index. Consumers may have caught a little respite in travel costs last month, but solid demand and rising input costs point to inflation firming. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD Technical Analysis: Brexit and trade concerns see the pair cycling at a midpoint FX Street 4 years A major turnaround in the risk sentiment was witnessed across the financial markets in Asia, as risk-off seeped back amid a round of fresh threats by the Trump administration to slap additional tariffs on $ 200 billion worth of the Chinese imports. The risk/ higher-yielding assets took a beating across the board. However, the safe-havens such as the Yen and gold failed to benefit from risk-aversion while the US dollar was broadly underpinned. 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