• The dollar fell on Wednesday as sources said Canada was ready to make a concession to the United States to resolve their talks over reworking the North American Free Trade Agreement, though lingering anxiety over U.S.-China trade tensions weighed.
China will ask the World Trade Organization next week for permission to impose sanctions on the United States for Washington's non-compliance with a ruling in a dispute over U.S. dumping duties.
The dollar index (DXY), which measures the greenback against six major currencies, was 0.07 percent lower at 95.185.
China's offshore yuan traded 0.1 percent weaker at 6.8857 per dollar after hitting a fresh 2-1/2 week low of 6.8888.
The euro (EUR=) was down almost 0.2 percent at $1.1586.
Against the Japanese yen, the dollar fell 0.13 percent to 111.49 yen.
• European Commission President Jean-Claude Juncker will call for the EU to promote the euro as a global currency to challenge the U.S. dollar as he presents his annual program to the European Parliament on Wednesday, a senior EU official said.
With the United States under President Donald Trump seeming to pull back from international engagements, the European Union could find it a favorable moment to spread the euro, the official said ahead of Juncker’s State of the Union speech.
• European Commission President Jean-Claude Juncker will say on Wednesday that Britain should not expect EU negotiators to soften demands as they try to conclude a Brexit divorce treaty but he will reaffirm an offer of a close future partnership, a senior EU official said.
• The Bank of Japan is set to keep monetary policy steady next week and debate how escalating global trade frictions could undermine its confidence that the export-reliant economy will sustain a moderate expansion thanks to robust world demand.
• A revved-up Czech economy is pointing to an interest rate hike as soon as this month and another possible move before the end of the year, central bank Governor Jiri Rusnok said in an interview with Reuters.
• Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales tax hike planned for next year, government sources told Reuters on Wednesday.
• The growing global trend toward economic protectionism and barriers to trade is a particular challenge for Asia’s economies, Russian President Vladimir Putin said on Wednesday at a forum attended by the leaders of Japan and China.
Protectionism and unilateralism were rearing their heads in global politics and the states of northeast Asia should work together to counter that trend, Chinese President Xi Jinping said on Wednesday.
“There are deep and complex changes underway in the international situation, the politics of force, unilateral approaches and protectionism are rearing their head,” Xi said at the Eastern Economic Forum on Russia’s Pacific coast.
Russian President Vladimir Putin, sitting on a stage alongside Japanese Prime Minister Shinzo Abe, proposed on Wednesday that the two men sign a peace treaty by the end of this year.
The two countries are in dispute over a chain of Pacific islands and as a result have still not formally ended their World War Two hostilities.
Japanese Prime Minister Shinzo Abe, speaking in Vladivostok after meeting Chinese leader Xi Jinping, said on Wednesday they had agreed to work toward an October visit by him to China, the latest sign of warming ties between the Asian rivals.
• U.S. sanctions on Iran's energy industry, when they come into effect in November, could potentially drive oil prices above $100 per barrel, according to an industry expert.
Iran is currently one of the largest oil exporters in the world. Cutting off Iranian supplies entirely would push oil prices above $100 per barrel because other major producers could not easily fill the void, said Fesharaki.
Trump said on Twitter in July that energy prices were too high and urged the Organization of the Petroleum Exporting Countries to reduce prices. But OPEC and Russia don't have the spare capacity to ramp up supply much more, Fesharaki said.
U.S. shale producers are also running close to their maximum capacity, he said. So, "it's a fallacy to believe that U.S. shale can fill the Iran void. Zero impact," he added.
The timing for oil prices to hit $100 per barrel — a level not seen since 2014 — depends on how quickly the U.S. and China resolve their differences on the trade front, Fesharaki noted.
• Oil prices rose on Wednesday after a report of a decline in U.S. crude inventories and looming sanctions against Iran raised expectations of tightening supply, while top producer Russia warned of a fragile global market.
Russian energy minister Alexander Novak on Wednesday warned of the impact of U.S. sanctions against Iran.
“This is huge uncertainty on the market – how the countries, which buy almost 2 million barrels per day of Iranian oil will act. The situation should be closely watched, the right decisions should be taken,” he said.
Novak said global oil markets were “fragile” due to geopolitical risk and supply disruptions.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $69.93 per barrel at 0646 GMT, up 68 cents, or 1 percent, from their last settlement. WTI futures gained 2.5 percent in the previous session.
Brent crude futures LCOc1 climbed 30 cents, or 0.4 percent, to $79.36 a barrel. Brent has climbed for four straight sessions, gaining 2.2 percent the previous day.
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