Forex Today: Risk-off returns on renewed US-China trade angst, US NFP – Key

Amid holiday-thinned quiet trading, the risk-off sentiment was back in vogue, as the latest White House announcement re-ignited US-China trade angst and lifted the demand for the safe-havens across the board. The USD/JPY pair met fresh supply and tested the 107 support before recovering most losses to trade near 107.40 levels.

Despite, a recovery in risk sentiment towards the Asian closing, the Antipodeans remained under pressure with the Kiwi having emerged the weakest on the back of the oil-price sell-off. Also, a sense of calm prevailed ahead of the key US non-farm payrolls releases, which kept the Asian stock markets on the back foot.

Main topics in Asia

Trump tells Treasury to consider another 100B in China tariffs - White House

The US President Trump has asked his Treasury department to examine another 100B in tariffs against China, according to a statement from the White House Press Secretary's office.

Japan household spending posts biggest drop in nearly a year: Reuters

Japan household spending dropped 0.9 percent year-on-year in February - its biggest annual in nearly a year, indicating low wage growth is undermining consumption expenditure. 

UN chief: Protectionism is not answer to today's problems - Xinhua News Agency

Comments from United Nations Secretary-General António Guterres are hitting the wires via Xinhua News Agency and Reuters: 

Moody's: US-China uncertainty may have economic impact beyond direct trade channels

The US-based ratings agency, Moody’s Investors Services, published the latest report, assessing the impact of the US-China trade spat on the global economy.

China still open to negotiation - Xinhua News Agency

China's Xinhua News Agency, a state-run news service, is out with comments about China's stance on further tariffs.

Key Focus ahead

Today’s EU macro calendar remains very quiet, except for the second-liner German industrial production and Eurozone retail PMI that will keep the EUR, GBP traders somewhat busy. The main market-moving event for today, the US labor market report, is scheduled ahead of the US open alongside the release of the Canadian employment data. Besides, the speeches by the Bank of England (BOE) Governor Carney and Fed Chair Powell will be closely eyed for fresh insights on their respective monetary policy programmes and US-China trade conflict.

EUR/USD risks losing LT trendline on upbeat US wage growth data

The common currency is on the back foot ahead of the March non-farm payrolls release. The EUR/USD fell to long-term ascending trendline (drawn from July low and Dec. 18 low) on Thursday, courtesy of downward revisions of the Eurozone PMIs and …

GBP/USD bracing against the 1.40 wall with US NFP in the barrel

Friday is an empty affair for the GBP on the economic calendar, and traders' focus will be squarely on the US Non-Farm Payrolls report. The NFP drops at 12:30 GMT, followed by a speech by Fed head Jerome Powell at 17:30.

Gold: Will Payrolls & Powell lift the yellow metal?

Gold has witnessed a solid two-way business in the previous two trading sessions, as markets stand divided on whether the US and China are cruising towards full-blown trade war or merely adopting a tough stance to bring the other party to the negotiating table.

US: Expect a 0.3% m/m increase in average hourly earnings – Goldman Sachs

Goldman Sachs’ Analysts are out with their brief preview on what to expect from today’s US labor market report due to be released at 1230 GMT.

GBP forecasts upped to the highest since Brexit vote – Reuters poll

The latest Reuters poll showed an upbeat outlook for Sterling in the coming months, in the wake of broad USD weakness amid mounting US-China trade war fears.