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Analysts at Scotiabank noted that the USD is strong in Thursday’s NA session with broad strength against its developed economy peers and the distribution of performance among the G10 is suggestive of mild risk aversion with notable weakness in the growth-sensitive commodity currencies AUD, CAD and NZD and relative outperformance in JPY.  

Key Quotes:

“Trade tensions are in focus as market participants assess the prospects for NAFTA as U.S. officials seek to push forward on their bilateral deal with Mexico.”
“Italian budget negotiations are an added focus with conflicting reports on planned deficit targets and a possible delay to the budget release. The broader tone is suggestive of risk aversion with weakness across global equity indices.”

“U.S. equity futures are unchanged and developed country bond yields are generally lower.”

“Commodity prices are mixed as oil prices remain elevated while copper and gold appear vulnerable.”