The USD recovers some of the lost ground, after its fall from the highs attained towards the end of June. On Tuesday the Trump administration announced tariffs of 10% on $200 billion worth of chinese imported goods, the mentioned tariffs are expected in 2 months time.News of further potential tariffs reflected on the Aussie’s performance given its close trade ties with the world’s 2nd largest economy.

The news of the newly announced tariffs weighed on Asian markets this morning with the major equity indices heading south as trade concerns make it back to the limelight. The major european inidces in the meantime took the negative handover with the DAX, FTSE and the CAC all shedding over 1% of losses so far in today’s session.

On the economic data or events front President Mario Draghi spoke at an event in Frankfurt but made no comments in realtion to monetary policy. Later today the Bank Of Canada will anounce its rate decision, analysts are expecting a rise to 1.5% for the current policy rate of 1.25%. Later this afternoon BoE Governor is expected to speak in Boston.

Ahead of the BoC rate decision so far the CAD has been softer agianst both the USD and the euro. Losses for the GBP eased, and while still losing when seen against the USD it managed to recover against the rest of the major currencies. Resignations earlier this week had raised concerns on Brexit but the situation seems calmer now.