China Unveils How It Will Retaliate To US Tariffs, USDJPY Snaps
While it will hardly come as a surprise considering that trade wars always evolve in an escalating tit-for-tat manner, the WSJ reports that just hours ahead of Trump’s announcement of as much as $60 billion in tariffs targeting Beijing, China is preparing to hit back with its own countertariff aimed at President Donald Trump’s support base, including levies targeting U.S. agricultural exports from farmbelt states in retaliation to the mounting trade offensive from Washington. At the same time, and in hopes of avoiding further escalation, Beijing is also reportedly weighing concessions, including easing restrictions on foreign investments in securities firms and insurance companies. Read More @ https://www.zerohedge.com/news/2018-03-21/china-unveils-how-it-will-retaliate-us-tariffs-usdjpy-snaps
US MADE ITS MOVE – Tariffs will be published within 15 days, opening a 30 day public comment period before they take effect;
- China Daily: China Embassador Cites They Will Hit Back At U.S. Tariffs – Chinese Ambassador to the US Cui Tiankai said China doesn’t want a trade war with the US or with anybody else, but China is not afraid of it. “If somebody tries to impose a trade war upon us, we will fight. We will do whatever we can to defend the legitimate interests. We will also do whatever we can to safeguard the open global trading system,” he said in a video posted on the embassy Facebook account. “Let me assure those people who intend to fight a trade war. We will certainly fight back. We will retaliate. If people want to play tough, we will play tough with them, and see who will last longer,” he said
We sell USDCNH – we focus on buying CNH.
Bank of England expected to keep path clear for May rate rise
Britain’s central bank is likely to keep on course on Thursday for an interest rate rise in May which would take borrowing costs above their emergency levels for the first time since the financial crisis more than a decade ago.
Last month BoE Governor Mark Carney and his colleagues surprised markets by saying rates might need to go up faster than expected, due to a strong global economy and an inflation rate that is running uncomfortably above target. No economist polled by Reuters expects the BoE to follow up on its rate hike in November – its first since 2007 – at its March meeting. But most think the BoE will increase borrowing costs from their current level of 0.5 percent in May. One major stumbling block was removed this week when Prime Minister Theresa May agreed a transition deal with the European Union to leave trade relations between Britain and the bloc unchanged after Brexit in March next year until the end of 2020. Carney has said interest rate policy will depend heavily on Brexit talks progressing smoothly and not derailing confidence. Data showing a further recovery in pay growth was also seen as a sign that the BoE was on course to raise rates when it next revises its economic outlook in May. Read More @ https://www.reuters.com/article/us-britain-boe/bank-of-england-expected-to-keep-path-clear-for-may-rate-rise-idUSKBN1GY02L
WHAT IS THE USD INDEX CHART SAYING?
The USD went under pressure this morning with GAP over China retaliation; the worst for the USD is ahead.
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES.
- 7.30am – Japan CPI has no change; but the data was over-shadowed by US & CHINA Trade War. CHF, JPY & GOLD moved to Safe Haven status.
- 8.30pm – Canada will go action with CPI data release – we are expecting the data to be good.
- 8.30pm – USD will go under pressure as we are expecting a weak Core Durables Orders.
- 10.00pm – New Homes Sales – We are expecting no Change of data.
Overall the market will stay cautious with CHINA and US goes head -on for Trade War. Be cautious and always be mindful of your money management.
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