Recap:

Asian equities continued to be burdened about trade worries with all regional index in negative territory as the respective closes loomed. Besides the fear from additional venomous commentary on the subject between Washington and Beijing, there was an anxious focus on Japan. US-Japan trade talks are due to begin later in the day, with auto exports specifically in the spotlight. This week was the witnessed of China announcing retaliation for the most recent round of US tariffs, while the issue could stalk financial market trade for some time to come.

As for Asian equities, the Nikkei 225 was down 0.5%, with Australia’s ASX 200 down by 0.11%, with Shanghai and Hong Kong stocks trading lower.

Japan’s second-quarter Gross Domestic Product numbers came back strongly erasing memories of the first quarter’s contraction. Inflation and monetary policy remain mired, however, despite signs of economic resilience.

As for commodities, trade worries dominated, with crude oil prices lower due to market participants worries about knock-on global growth effect, while gold prices were caught up in a haven bid

Outlook:

Going forward, market participants will keep an eye on UK’s gross domestic product for Q2, along with trade balance data, industrial production, manufacturing production and construction output, all for June, set to release in a few hours.

Trader’s View:
EURUSD: EUR/USD drops sharply to as low as 1.1435 so far today.

GBPUSD: GBP/USD’s decline extends to as low as 1.2775 so far.

USDCAD: Intraday bias in USD/CAD remains neutral for the moment.

USDCHF: USD/CHF rebounds strongly after dipping to 0.9895.

USDJPY: USD/JPY is staying in range of 110.60/112.15.