China slaps 25% tariffs on $16 billion worth of US goods
- The Chinese Ministry of Commerce announces a 25 percent charge on $16 billion worth of U.S. goods, including vehicles such as large passenger cars and motorcycles.
- China’s announcement comes after the U.S. Trade Representative’s office released a finalized list of $16 billion worth in Chinese goods that will be hit with tariffs. Read @ https://www.cnbc.com/2018/08/08/china-announces-25percent-tariffs-on-16-billion-worth-of-us-goods-including.html
UK trade minister Fox says EU is pushing Britain to no-deal Brexit
Fox, a prominent Brexit supporter in Prime Minister Theresa May’s cabinet, put the odds of Britain leaving the European Union without agreeing a deal over their future relationship at 60-40. “I think the intransigence of the commission is pushing us toward no deal,” Fox told the Sunday Times after a trade mission in Japan. “We have set out the basis in which a deal can happen but if the EU decides that the theological obsession of the unelected is to take priority over the economic wellbeing of the people of Europe then it’s a bureaucrats’ Brexit — not a people’s Brexit — (and) then there is only going to be one outcome.” Read @ https://www.reuters.com/article/us-britain-eu-fox/uk-trade-minister-fox-says-eu-is-pushing-britain-to-no-deal-brexit-idUSKBN1KP0QE
Pound Falls to Lowest Since October Versus Euro on No-Deal Fear
Sterling dropped for the third day versus Europe’s common currency and weakened against all of its Group-of-10 peers. U.K. International Trade Secretary Liam Fox said over the weekend that the risk of a no-deal Brexit had increased to as much as 60 percent. Technical analysis here: Euro-Pound Charts Offer Something for Both Bulls and Bears The pound’s weakness versus the euro “is a clear sign that markets are starting to focus on the pound-specific risks associated with a no-deal Brexit,” said Viraj Patel, a currency strategist at ING Groep NV. “We’ve penciled in a 0.91-0.92 high over the coming months to reflect peak no-deal Brexit uncertainty.” Investors have turned more bearish on the U.K. currency as the Brexit deadline approaches, with the latest data from the Commodity Futures Trading Commission showing that both leveraged funds and asset managers continued to increase short positions. Read @ https://www.bloombergquint.com/global-economics/2018/08/08/pound-slips-to-lowest-since-november-versus-euro-on-no-deal-fear#gs.8DZV7I0
WHAT IS THE USD SAYING?
USD is well supported at $95 and it looks like the rally will continue after this Friday CPI data. For now the Trade war between US and China continues.
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES TODAY.
- 9.30am – China will release their CPI data – expected to be good – AUD & CNY volatility expected.
- 2.00pm – Japan will release their machinery tools orders – expected to be good.
- 4.00pm – EURO will release ECB Economic Bulletin – volatility expected in favor for the EURO.
- 8.30pm – US will release Core PPI data – expected t be good.
The market will continue to hit hard on safe havens instrument as President Donald Trump believes that the GDP and US economy will continue to do well moving forward. His optimism will keep all safe haven – CHF, JPY & GOLD at low levels.
Always be cautious and keep money management in place at all times.
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