The Japanese Yen Rises

The Japanese yen gained despite positive trade news. Moreover, the political turmoil in Hong Kong along with the poor Chinese data also supported the yen.

Therefore, leading the USD/JPY pair to fall by 0.2% to 106.50.

Also, instead of applying the new tariffs on Chinese goods in early September, the US government pushed it to December 15th; thus making a positive impact on the stock markets.

The yen, which usually moves in directions opposite to most risk assets, also surprisingly rose.

The yen was already trading higher against the US dollar as investor’s sentiment was shaken by political unrest in Hong Kong.

Meanwhile, weaker-than-expected Chinese data also provided an additional boost to the yen.

The Chinese yuan gained despite the data. The USD/CNY pair last traded at 7.0194, down 0.3%.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.1% to 97.678.

The AUD/USD pair and the NZD/USD pair were down 0.2% and 0.1% respectively.

Gold Prices Drop

Gold prices fell on Wednesday following the US’s decision to delay tariffs on certain Chinese goods to December 15th, 2019.

Consequently, gold futures for December delivery fell by 0.4% to $1,507.95 on the Comex division of the New York Mercantile Exchange.

The decision led to widespread hope that the trade war between the two countries was on the mend, sending equities higher but dented demand for gold.

Before the news, gold prices hit six-year highs on Hong Kong’s political chaos that saw its airport disrupted for the second day amid ongoing protests.

Furthermore, last night President Trump’s tweet that the Chinese government is moving troops to the border with Hong Kong may lead to a chaotic situation according to analysts if China decides to act with military force.

Rising Crude Inventories Push Oil Prices Down

Oil prices went down on Wednesday after the crude inventories report revealed its data.

At 04:10 GMT, the US Crude Oil WTI Futures were down by 1.3% to $56.38 while International Brent Oil Futures lost 1.1% to $60.64.

According to the weekly report from the American Petroleum Institute, US crude stocks rose by 3.7 million barrels to 443 million last week. The data beat analyst expectations of a decrease of 2.8 million barrels.

Financial Events to watch for today

08:30 GMT
CPI (YoY) (Jul) [UK]
14:30 GMT
Crude Oil Inventories [US]