A somewhat busy day for markets, with the US once again coming into focus.

The euro showed some signs of life, as it added value throughout the trading session. The EUR/USD opened at $1.15944 before ebbing and flowing until it dropped to lows of $1.15645. From that point however, it was able to climb off the canvas and rally to highs of $1.16237. It came off those highs in late trading before rallying back up to early highs this morning of $1.16244. The GBP/USD was underwhelming after opening at $1.32756 in reached a high of $1.32767 in the opening hour. It then began to slide for the next few hours until it dropped to lows of $1.32249. It was able to steady itself and regain some of those losses as it remained flat in late trading. It is currently trading at $1.32459.

The Dow was underwhelmed once again, as trade wars and tariffs continue to weigh heavily. After opening 25,109.00, it bumped up to a high of 25,111.91 before tumbling for most of the session until it bottomed-out at 24,819.00. It managed to bounce back and it closed at 24,990.34. However, in early morning trading it dropped as much as 130 points in a 15-minute period as news breaks that the Trump administration wants to add tariffs to $200 billion worth of Chinese goods. The Dow is now struggling at 24,881.50. The Dax was hammered after uncertainty surrounding Angela Merkel’s leadership surfaced. After opening at a high of 13,009.40, it struggled throughout the session, falling to lows of 12,779.60. It rallied shortly before the close, closing at 12,853.10.

The day ahead now looks decidedly shaky as news filters through about the Trump tariffs on Chinese goods. The most significant piece of data set for release today is the US Building Permits data. This reflects the annualised number of new residential building permits issued during the previous month. Other data set for release today includes:

Australia – Monetary Policy Meeting Minutes, HPI

Japan – Monetary Policy Meeting Minutes

US – Housing Starts

NZ – GDT Price Index, Current Account, Westpac Consumer Sentiment

Europe – Swiss SECO Economic Forecasts, Current Account, ECB President Mario Draghi speaks

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