US-China trade developments have dominated market moves with volatile conditions.

US-China trade developments have dominated market moves with volatile conditions. Talks on Thursday failed to secure a breakthrough and the US increase in tariffs on Chinese exports to 25% from 10% went ahead on Friday.

Equity markets registered net losses, although there was a recovery from intra-day lows with talks set to continue Friday.

The yen maintained a strong tone as defensive support continued with USD/JPY dipping to 3-month lows.

The US dollar overall lost ground amid concerns that there could be damage to the US economy and EUR/USD moved above 1.1200.

Oil prices were protected by underlying supply concerns as Iran tensions increased further.

The Norwegian krone lost ground despite a hawkish Norges Bank statement and higher than inflation data as trade fears damaged Scandinavian sentiment.

Gold was able to secure only limited support despite fragile risk conditions.

Bank of England member Saunders stated that the neutral interest rate for interest rates was likely to be around 2.0% and expected rates to rise over time, but increases wouldn’t be far or fast with the rhetoric in line with recent MPC commentary.

Sterling was hampered by comments from Labour leader Corbyn that the government had made no big offer on Brexit talks. The overall risk-averse tone also hampered the UK currency with markets fretting over the global trade and growth outlook. GBP/USD declined to 1.2970 before regaining the 1.3000 level as the dollar dipped while GBP/EUR dipped close to 1.1600.

The UK currency was unable to make headway on Friday as risk appetite dipped once again. Domestic data will gain at least temporary attention in Europe with the latest GDP and industrial production data, although risk conditions are likely to dominate during the day with GBP/USD trading around 1.3000 at the open as choppy trading persisted.

Economic Calendar

07:45Industrial Output MM(MAR)-0.50%0.40%
07:45Non-Farm Payrolls QQ-0.20%
09:00Industrial Output MM SA(MAR)-0.80%0.80%
09:00Industrial Output YY WDA(MAR)-0.90%0.90%
09:30GBP Total Business Investment (Q/Q)--0.90%
09:30United Kingdom GDP (Q/Q)0.20%0.20%
09:30United Kingdom GDP (Y/Y)1.40%1.40%
09:30GBP Industrial Production (Y/Y)(MAR)-0.90%0.10%
09:30GBP Industrial Production (M/M)(MAR)0.10%0.60%
09:30GBP Manufacturing Production (Y/Y)(MAR)-0.70%0.60%
09:30GBP Manufacturing Production (M/M)(MAR)0.20%0.90%
09:30GBP Trade Balance(MAR)-12.70B-14.11B
09:30GBP Trade Balance Non EU(MAR)-4.50B-5.84B
13:30USD CPI (Y/Y)(APR)2.10%1.90%
13:30USD CPI Ex Food & Energy (Y/Y)(APR)2.10%2.00%
13:30USD CPI Ex Food & Energy (M/M)(APR)0.20%0.10%
13:30USD CPI (M/M)(APR)0.40%0.40%
13:30CAD Building Permits (M/M)(MAR)--5.70%
13:30CAD Unemployment Rate (M/M)(APR)5.80%5.80%
13:30CAD Full Employment Change(APR)--6.4K
13:30CAD Employment Change (M/M)(APR)1.0K-7.2K
13:30FOMC Brainard Speaks--
14:05FOMC Member Raphael Bostic speech--
15:00FOMC member John C. Williams speech--
15:30ECB Benoit Coeure Speaks--
18:00USD Baker Hughes US Oil Count-807
19:00Monthly Budget Statement(APR)-154.0B-147.0B

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.