China has a limited number of weapons to use in a trade war with the US
- The U.S. and China moved closer to the brink of a trade war after President Donald Trump threatened another $200 billion in tariffs, responding to a lack of progress made in negotiations.
- Because it imports far less than it exports, China would face limitations in how it could respond to U.S. duties.
- Options include action against U.S. companies in China, currency devaluation, selling Treasurys and easing sanctions against North Korea. Read More @ https://www.cnbc.com/2018/06/19/china-has-a-limited-number-of-weapons-to-use-in-a-trade-war-with-the-us.html
Trade fears slam stocks and commodities as investors eye safety
Global stock markets tumbled with U.S. bond yields and agricultural commodities on Tuesday, while the dollar rose and investors flocked to safety in the face of a rapidly escalating U.S.-China trade conflict. Read More @ https://www.reuters.com/article/us-global-markets/trade-war-worries-slam-china-and-emerging-markets-idUSKBN1JF01V
Trump threatens almost all imports from China as Beijing fires back
China has underestimated President Donald Trump’s resolve to move forward with tariffs unless Beijing changes its “predatory” trade practices, a top U.S. trade advisor said on Tuesday, in comments that diminished the chances of a negotiated settlement to a looming trade war between the world’s economic superpowers. https://www.reuters.com/article/us-usa-trade-china-trump/trump-determined-to-hit-china-as-tit-for-tat-tariff-war-erupts-idUSKBN1JE2ZQ
WHAT IS THE USD INDEX SAYING?
USD is at a critical resistance and it can break or pullback today; we believe the USD will take a breather unit the trade war is over. Swiss is also taking a loose monetary policies that will keep the FED cautious – Read @ Swiss National Bank to stick to loose policy, economists all agree: Reuters poll – https://www.reuters.com/article/us-snb-rates-poll/swiss-national-bank-to-stick-to-loose-policy-economists-all-agree-reuters-poll-idUSKBN1JF0AU
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES
- 6.45am – RBNZ will release their Current Account and is expected to be good.
- 7.50am – BOJ will release their monetary policy minutes and s expected to be cautious. Volatility in favor of JPY is expected.
- 2.00pm – German – It’s a leading indicator of consumer inflation – when manufacturers charge more for goods the higher costs are usually passed on to the consumer. Expected to be good.
- 8.30pm – US Current Account – should all good this time around. USD expected to be volatile.
- 9.30pm – 4 central banks will speak and the market will be extremely cautious and massive volatility is expected from 9pm – 11pm today.
- 10.00pm – US Home sales is a economic leading indicator and is expected to be good.
- 10.30pm – Crude Oil inventories and is expected to be higher; oil expected to fall further today.
The market will be cautious today as the central releases their message about the same time; we suggest traders to be cautious and don’t over trade and always have 10/2 rule in place before you trade.
High Risk Investment Warning:
Please note that Forex and other leveraged trading involves significant risk of loss, It is not suitable for all traders and you should make sure you understand the risks involved, it is recommended that you seek an independent advice, if necessary.