Asia stocks slip to 14-month lows on trade worries

[777tradesresearch]

Asian stocks slipped to 14-month lows on Wednesday, as investor confidence was chilled by the latest round of verbal threats in an intensifying U.S.-China trade conflict.

MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.3 percent, plumbing its lowest levels since July 2017.

Hong Kong's Hang Seng (HSI) fell 0.5 percent and the Shanghai Composite Index (SSEC) dropped 0.3 percent.

Tokyo's Nikkei (N225) declined 0.4 percent and Australian stocks gave up 0.1 percent, while South Korea's KOSPI shed 0.2 percent.

The mood was dimmed by the verbal sparring between Washington and Beijing as the months-long escalation in trade tensions between the world's two biggest economies took their toll on riskier assets.

China told the World Trade Organization (WTO) on Tuesday it wanted to impose $7 billion a year in sanctions on the United States in retaliation for Washington's non-compliance with a ruling in a dispute over U.S. dumping duties.

 

[777tradesresearch]

Dollar holds firm after upbeat data, hovers near nine-month high vs yen
The dollar stood tall against its peers on Friday, hovering near a nine-month high versus the yen, after data reinforced upbeat views about the U.S. economy and backed the Federal Reserve's signal for a steady course of rate increases over the next year.
U.S. gross domestic product grew at a 4.2 percent clip in the second quarter, the fastest in nearly four years, according to government data on Thursday. Another report showed durable goods rose 4.5 percent in August, rebounding from a revised 1.2 percent drop the month before.
The dollar traded at 113.395 yen after gaining roughly 0.6 percent overnight to 113.47, its highest since December 2017.

 

[777tradesresearch]

Canadian Dollar on High mode of its 4 months as NAFTA Deal ahead

The dollar slipped against the Canadian dollar on Monday as the United States and Canada achieved a structure arrangement to refresh the North American Free Trade Agreement.

Sources with coordinate information of the discussions affirmed the two nations achieved an arrangement, which included offering more dairy access to U.S. agriculturists and also Canada consenting to a side-letter course of action successfully topping vehicle fares to the United States.

The Canadian dollar ascended around 0.7 percent, achieving a four-month high of C$1.2814 as the news about the structure assention broke, before surrendering a few additions. It last exchanged at C$1.2836.

Despite the fact that business sectors were at that point foreseeing an assention, one wellspring of stress will be cleared away if an arrangement is made.

 

[777tradesresearch]

The Canadian dollar is extremely solid today. Together with that, it's simple for monetary forms from asset needy and developing business sector nations to rise, putting offering weight on the dollar.

Mexico's peso cash reinforced to a seven-week high versus the dollar, at one point increasing around 0.85 percent to 18.54 for every dollar.

The yen , in the interim, debilitated to 113.96 for each dollar, achieving its most reduced since the center of November 2017 preceding paring a few misfortunes. It last exchanged 0.2 percent higher at 113.90 for every dollar.

The greenback has risen four straight weeks against the Japanese money, including an about 1 percent increase booked a week ago.

 

[777tradesresearch]

The GBP/USD is trading back into the 1.3000 major technical level as the US Dollar downshifts in early Wednesday action, fueled by risk-bullish headlines from the European continent.

Brexit headlines continue to dominate Sterling traders' headspace, and a steady stream of inconclusive talking heads brandishing their positions on Brexit has seen confidence in the UK continue to wane steadily as glimmers of hope for successful trade talks between the EU and the UK give way to bouts of hard selling as Britain seems no closer to a workable exit from the European Union than it did immediately following the Brexit referendum.

 

[777tradesresearch]

The Italian government announced they would be willing to reduce their federal deficit to back below 2% in 2021, and the broader Euro-area saw a brief bounce in market sentiment, taking both the EUR and the GBP briefly higher, and the Pound is now trading just shy of the 1.3000 handle.

The economic calendar is clear of any meaningful UK data for Wednesday, and traders will be keeping an eye out for continued headlines covering both Brexit and political tensions within the Eurozone, and early Wednesday's pop in the Sterling could find itself getting faded as the day unfolds.

 

[777tradesresearch]

The Pound could be primed for another leg down as technical indicators have reloaded their neutral stances, and as we noted: "technical indicators have corrected oversold readings before losing directional strength within negative readings, while the 20 SMA is currently crossing below the 200 EMA, reflecting the strength of sellers. Of course, the pair is little about technical readings and all about Brexit, with the pair's direction depending on which kind of Brexit the market believes it will take place."

Support levels: 1.2970 1.2940 1.2900

Resistance levels: 1.3010 1.3035 1.3065