Trump further considers punitive action.......>

FOREX: Trump further considers punitive action against China

- CNH traded poorly, with USD/CNH narrowing the gap with the early May highs at

7.1561 after US President Trump openly pondered severing trade links with China

in their entirety. He also confirmed that he will refuse to re-negotiate the 1st

phase of the Sino-US trade deal struck months ago, despite reports suggesting

China will fail to meet import clauses.

- The renewed tension between the US and China kept equities under pressure in

early US hours, but much of this was partially reversed following the open on a

sharp outperformance in banking shares - which bounced well after trading heavy

earlier in the week.

- Higher oil prices helped support CAD throughout, with the IEA forecasting a

recovery in crude prices given the near 12% drop in world oil supplies.

- Chinese industrial production data will be of interest Friday, with April Y/Y

figures seen inching back into positive territory. German and Eurozone prelim

GDP and retail sales/industrial production data from the US also cross. The

speakers schedule is quiet, with no major central bankers on the docket.