DOW AND THE FALL
The Dow Jones Industrials is now down over 3300 points from its highs, and has broken below February’s spike-crash lows to the lowest since Nov 20th.. The Dow is now the worst-performing major index for 2018 – down almost 6% YTD. VIX is back above 25 and the curve is notably inverted.
China imposing new tariffs on U.S. products in retaliation of Trump tariffs
China says it’s rolling out new tariffs on U.S. meat, fruit and other products as retaliation against taxes approved by President Trump on https://www.cbsnews.com/news/china-imposing-new-tariffs-on-u-s-products-in-retaliation-of-trump-tariffs/The Chinese finance ministry says in a statement that the new tariffs begin Monday. The announcement follows through on warnings Chinese officials have made for several weeks in an escalating trade dispute with the United States. China’s Customs Tariff Commission is increasing the tariff rate on eight imported U.S. products, including pork, by 25 percent. It’s also imposing a new 15 percent tariff on 120 imported U.S. commodities, including fruits. Read More @
WHAT IS THE USD INDEX SAYING?
The USD is at tipping point – with China going against the headwind and dare to face-off with US – might give resistance for the USD to go any higher.
TODAYS NEWS THAT MIGHT AFFECT YOUR TRADES.
- 12.30pm – RBA focus – we are expecting a dovish statement – we maintain SELL for AUD. No change to the rate is expected.
- 2.00pm – German Retail sales – is important as part of consumer spending – we are expecting good data – we maintain BUY for EURO.
- 3.15pm – 4.30pm – There will PMI releases from EURO, Spain, Italy, German and Euro-Zone – we expect mix data – little or no movement is expected.
- 3.55pm – 4.30pm – Keep an eye on German and EURO mfg PMI – is a leading economic indicator for ECB. Expect Volatility.
- ALL DAY – Total Vehicle Sales from US – which is the first data from the US each month – is a leading indicator for consumer spending – we expect poor sales. We maintain SELL for USD.
Be cautious with the market as this week there is NFP and may disrupt your money management – always keep money management as you number 1 priority.
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