Despite some calming words by a White House official regarding trade, a risk-off mood is hurting global stocks as the euro retreats. Meanwhile, the pound fell on commentary from a new Bank of England member.

Calming the trade-war fears

White House trade advisor Peter Navarro tried to ease concerns over the growing trade war with China, saying that there won’t be sweeping restrictions on foreign investments.

Navarro said to discount the idea that the White House is putting investment restrictions on the whole world. His comments did little to improve the global equity markets.

Navarro’s words also come after a report Monday that the Treasury Department is seeking to limit Chinese investments in U.S. businesses over security concerns. That report is due Friday, but there is mixed messages about what it will include. Navarro said it will be specific to China, while Treasury Secretary Steven Mnuchin said Monday it was not specific to China, “but to all countries that are stealing our technology.”

The EUR/USD pair dipped on the rising risk-off sentiment, reaching as low as 1.165 Tuesday morning before inching up to around 1.167.

The dollar is trading relatively flat against the Japanese yen, as both are seen as safe-haven currencies. USD/JPY is trading in the range of 109.55 and 109.75.

New BoE member affects sterling

Bank of England’s new Monetary Policy Committee member Jonathan Haskel is already impacting the pound with comments during his appointment hearing in U.K. parliament.

Haskel spoke about the risks of raising interest rates too fast and said interest rates are becoming less effective in stimulating business investment.

GBP/USD dropped to 1.320 on his comments and trades back up around 1.324.

As far as economic indicators for the U.K., the final Q1 GDP reading is due Friday.

U.S. housing market, Fed speak headlines the day

The U.S. Case-Shiller Home Price Indices came out lower than expected, slowing to 6.6% growth year over year compared to 6.8% expected and 6.7% the previous month.

Later today, Federal Reserve FOMC members Raphael Bostic and Robert Kaplan are scheduled to speak separately.