Indian Refiners Scale Back Russian Oil Imports as U.S.-India Trade Deal Advances 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Australian Household Spending Dips in December as RBA Tightens Policy 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Gold and Silver Prices Climb in Asian Trade as Markets Eye Key U.S. Economic Data 
Asian Markets Surge as Japan Election, Fed Rate Cut Bets, and Tech Rally Lift Global Sentiment 
The U.S. Treasuries jumped after remaining flat for a long time as investors moved into safe-haven assets on The escalating war of words between U.S. President Donald Trump and North Korean leader Kim Jong Un sent equity markets tumbling as the region braced for more provocations from his regime next week. The yield on the benchmark 10-year Treasury, slumped 2 basis points to 2.19 percent, the super-long 30-year bond yields also plunged nearly 2 basis points to 2.77 percent and the yield on short-term 2-year note traded 1 basis point lower at 1.32 percent by 11:50GMT.
In the US, the focus today will also be on consumer price inflation figures for July. Prices are expected to post the first monthly increase in three to leave the year-on-year CPI rate rising 0.2ppt 1.8 percent y/y. But this would still remain some way below the average so far this year. And core CPI is forecast to remain unchanged at 1.7 percent y/y for the third consecutive month, the joint-lowest rate for two years.
Risk markets remain under pressure due to geo-political tension between the US and North Korea. US equity markets came under renewed selling pressure yesterday, which saw safe haven currencies like JPY and CHF benefit, as did the long end of the bond market, while commodity currencies continue struggle, not helped by a very sharp reversal lower in oil prices. With this backdrop, if this afternoon’s US CPI data is particularly weak it has the ability to push these already nervous markets further.
Meanwhile, the S&P 500 Futures traded 0.15 percent lower at 2,433.50 by 12:10GMT, while at 12:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 39.82 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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