Asian stocks, as well as American and European futures, rose after the Trump administration delayed tariff hikes by two weeks in a goodwill gesture to China. In a tweet, the President said that he had agreed to delay tariffs on goods worth more than $250 billion that were to start on October 1. He said that the decision was made at the request of China’s Liu He. This came a day after China released a list of US goods that it will exempt from tariffs. It also came a few weeks before the two countries restarted the trade talks to address key issues on trade. The Dow and S&P 500 futures rose by 125 and 12 points respectively.

The Japanese yen declined against the USD after the country released weak PPI data. In August, the producer price index declined by -0.9%, which was lower than the previous decline of -0.6%. On a MoM basis, the PPI declined by -0.3%. Meanwhile, in July, the core machinery orders declined by -6.6%, which was better than the expected decline of -9.0%. In June, the orders had risen by 13.9%. On an annualized basis, the core machinery orders rose by 0.3%, which was better than the consensus estimate of -4.5%. 

The euro was unmoved against the USD and GBP ahead of a busy day in Europe. In the morning, the market will receive the CPI data from Germany. The headline CPI is expected to rise by 1.4%, which will be lower than the expected 1.7%. The HICP is expected to rise by 1.0%, which will be lower than the expected 1.1%. In France, the headline CPI is expected to remain unchanged at 1.1% while the HICP is expected to decline slightly from 1.3% to 1.2%. In the EU, the industrial production is expected to have declined by -1.3% in July. The biggest news will be from the ECB, which is expected to release its interest rates decision. The bank is expected to leave interest rates unchanged at 0.00%. The deposit facility rate is expected to decline from -0.40% to -0.50%. 

The price of crude oil declined yesterday after it emerged that Trump had disagreed with National Security Advisor of the US John Bolton on the easing of Iran sanctions. The President’s plan was to ease the sanctions and then restart talks with the country. John Bolton vehemently rejected this approach. As such, investors believe that the Trump administration could restart talks and possibly remove sanctions as a sign of goodwill. Meanwhile, official crude oil inventories declined sharply by more than 6.912 million barrels. Later today, OPEC will release its monthly report. The US will also release the CPI data for August.

XBR/USD

The XBR/USD pair declined sharply yesterday from an intraday high of 63.21 to a low of $59.99. In the Asian session, the pair rose slightly and is currently trading at 60.66, which is slightly lower than the 61.8% Fibonacci Retracement level. This price is below the 25-day and 14-day EMAs, which made a crossover yesterday. The RSI has moved higher slightly from a low of 23 to the current 35. The pair will likely continue moving lower as traders expect more optimism on US-Iran relations. 

EUR/USD

The EUR/USD pair stabilized after significant declines yesterday when the pair dropped below the important support of 1.1015. The pair is now trading at 1.1010, which is along the 61.8% Fibonacci Retracement level. The momentum indicator has remained unchanged at the neutral level of 100. The pair could see some volatility today.

USD/JPY

The USD/JPY pair continued to rise after Japan released the PPI and machinery order data. The pair reached a high of 108.10. This level was significantly higher than the 104.45 level where the pair was on August 23. On the four-hour chart, the pair is trading above the 14-day and 28-day moving averages while the RSI has climbed to a high of 81. The Bulls Power indicator has continued to rise. There is a likelihood that the pair’s momentum could continue.