Risk-off market profile prevailed in Asia at full steam, as the Asian equities tracked the overnight sell-off in their US counterparts, after the US President Trump’s announcement of the import tariffs on steel and aluminum intensified the concerns over a possible trade war, with a strong retaliation expected from China.
Across the fx space, the Yen regained the bids on the back of safe-haven flows, knocking-off USD/JPY below the 106 handle for the first time in two weeks, despite the usual jawboning from the BoJ Governor Kuroda. The Aussie wiped out gains and traded neutral around the 0.7750 levels while its OZ counterpart, the NZD, stalled its upmove and consolidated the gains near 0.7270 region. Meanwhile, both the EUR and GBP remained better bid versus the greenback, as markets await fresh trading impetus from the European session ahead.
Main topics in Asia
US holds 'frank' talks on trade with Chinese envoy - White House Official - Reuters
Reuters report quotes White House Official as saying that Trump administration held "frank and constructive" talks with Chinese President Xi Jinping's top economic adviser, Lie He on Thursday.
BOJ's Kuroda - Need to continue powerful monetary easing
Bank of Japan (BOJ) Governor Kuroda, while speaking in the Parliament, stuck to the script of stressing the need to continue powerful easing.
BoJ’s Kuroda: Will need to consider further easing if necessary
More comments flowing in from the BoJ Governor Kuroda, via Reuters, as he continues to speak on the inflation and employment outlook.
Asian stocks are a sea of red on trade war fears
Asian stocks are reporting losses on Friday as US President Trump's combative action on foreign trade has boosted fears of a full-blown global trade war.
Aus TradeMin Ciobo calls US' steel tariffs as 'disappointing'
Australia's Trade Minister Steven Ciobo speaks to reporters in Sydney, expressing his disappointment on the US steel tariffs announcement.
Key Focus ahead
Heading into Friday’s EUR calendar, the German retail sales remain in focus pre=Europe open. However, the main risk event for today remains the UK PM Theresa May’s speech, in which she will speak about Britain's post-Brexit relationship with the European Union (EU), in London. Meanwhile, the UK construction PMI data and BOE Governor Carney’s speech will also draw some attention in Europe. The NA session remains data-light, with the Canadian GDP and the US revised UoM consumer sentiment on the cards.
EUR/USD - Bullish outside day, crowding out weak bears?
EUR/USD staged a solid rebound from 1.2173 (38.2% Fib R of 1.1554- 1.2556) yesterday and rose to 1.2773, engulfing the previous day's high and low.
GBP/USD - Eyes bull hammer reversal, focus on PM May speech
The big gains are ruled out as the UK is a current account deficit country and hence the Pound is extremely vulnerable to rising odds of an all-out global trade war and the resulting risk aversion in the equities.
Brexit angst intensifies, May to set out ‘five tests’ for Brexit deal
The latest headlines report that UK PM May is to set out ‘five tests’ for Brexit deal as follows ..
A new point of tension that has come to the fore this week is trade relations as overnight President Trump announced tariffs on steel (25%) and aluminium (10%) imports to the US in pursuit …
Trump Tariffs Bad News for USDJPY and Stocks
Sterling on the other hand fell for the third consecutive trading day ahead of Prime Minister May's big Brexit speech. cccccccccccc
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

EUR/USD retests daily lows near 1.0850 on softer US PPI
EUR/USD remains on the defensive against the backdrop of another positive day in the US Dollar, always amid intense tariff jitters and weaker-than-expected US Producer Prices in February.

Gold looks bid and trades close to $2,950
Gold extends its winning streak, moving toward the $2,950 mark after notching gains over the past two sessions. Heightened fears of an economic downturn, spurred by escalating trade tensions, have fueled a risk-off environment—further boosting the allure of the precious metal as a safe-haven asset.

GBP/USD remains offered near 1.2940 on USD buying
The continuation of the buying interest in the Greenback keeps the risk complex under pressure, motivating GBP/USD to recede to the 1.2940 region and reverse two consecutive days of gains for the time being.

Metaverse narrative stalls as price action fades, but on-chain data signals continuing accumulation
Metaverse tokens are cryptocurrencies associated with virtual worlds, digital economies, and immersive online experiences. Tokens like Sandbox, Decentraland, and Axie Infinity, three of the most prominent assets during the Metaverse boom of 2021, continue to face correction since they topped in early December.

Brexit revisited: Why closer UK-EU ties won’t lessen Britain’s squeezed public finances
The UK government desperately needs higher economic growth as it grapples with spending cuts and potential tax rises later this year. A reset of UK-EU economic ties would help, and sweeping changes are becoming more likely.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.