Scheduled commentary from ECB President Mario Draghi headlines the economic calendar in European trading hours. The start of Brexit negotiations and a looming French election make for a treacherous landscape in the near term. That may inspire Draghi to push back against concerns that the ECB is running out of buy-able assets, stressing that stimulus can be expanded if needed and punishing the Euro in the process.
Later in the day, all eyes turn to a meeting between Donald Trump and Xi Jinping, the Presidents of the US and China. Bellicose rhetoric from the White House has traders worried that a rift between the world’s top two economies. Signs that the two leaders were able to find common ground may downgrade such fears and remove a perceived barrier to continued Fed rate hikes, sending the US Dollar upward.
The Japanese Yen outperformed as stocks fell in Asian trade, boosting demand for the standby anti-risk currency. The risk-off mood also weighed on the sentiment-sensitive Australian and New Zealand Dollars. A late-day rebound in S&P 500 index futures – which slid alongside Asian bourses early in the session – eased pressure on the latter currency. The Aussie continued to suffer however, stung by soft Chinese PMI data.
Asia Session
European Session
** All times listed in GMT. See the full DailyFX economic calendar here.
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