• Norway lowers its central bank inflation target to 2%

  • Stocks remain depressed as the potential trade war may be just around the corner

  • Canadian GDP print to be released in the afternoon

Jerome Powell hearings in the Congress were expected to be a market mover events this week and probably no one expected shockwave caused by the Donald Trump announcement on tariffs. As a result CHF and JPY are the strongest currencies among G10 on the back of risk-off sentiment. On the other hand, CAD remains on the back foot ahead of GDP data performing the worst among its major peers. Gold trades higher while oil remains under pressure.

After a tiny decrease seen in manufacturing PMI the gauge measuring confidence among UK builders improved last month quite easily beating economists’ forecasts. However, the details do not look so encouragingly as the industry faced shrinking new orders for the second month in a row. The pound barely responded as construction does not seem to be so crucial for the UK economy.

The Norwegian Finance Ministry has just decided to lower the central bank’s inflation aim to 2% from 2.5% causing a wild increase in the NOK as it takes the Norges Bank closer to the target.

Cryptocurrencies’ prices have not changed too much recently as they have remained within their consolidation ranges. However, it does not mean neither notable revelations coming from the cryptocurrency industry. Let us begin with the newest report from the US Commodity Futures Trading Commission.

In the afternoon UK Prime Minister Theresa May is expected to deliver a speech on her aims for trade between UK and EU after Brexit. She is expected to highlight her vision of UK being a champion of free trade based on high standards. Speaking of European politics it is also worth to remind that Italians will go to poll stations this Sunday to elect new parliament.

Announcing fresh tariffs on steel and aluminium imports US President Donald Trump has probably commenced a new chapter in global trade war, a move which sent Wall Street and the US dollar lower. He announced 25% tariff on imported steel and 10% on aluminium for “a long period of time”. The move sparked immediate concerns of retaliation from the biggest trade players in the world.

With this week’s major events like Powell hearings in Congress already behind us traders will focus on the regular macro releases on Friday. In the afternoon figures concerning Canadian growth and US consumer sentiment are about to be released.