SOFTER STAND – Trump to authorize tariffs as White House opens way for more exemptions
Trump was expected to sign a presidential proclamation to establish the tariffs during a ceremony on Thursday, but a White House official said later it could slide into Friday because documents had to be cleared through a legal process. A senior U.S. official said the measures would take effect about two weeks after Trump signs the proclamation. The tariffs would impose duties of 25 percent on steel and 10 percent on aluminum to counter cheap imports, especially from China, that the president says undermine U.S. industry and jobs. It was not immediately clear whether the proclamation would list countries to be exempted, as pressure grew for Trump to exclude U.S. allies from the action. Read More @ https://www.reuters.com/article/us-usa-trade-imf/trump-to-authorize-tariffs-as-white-house-opens-way-for-more-exemptions-idUSKCN1GJ1PS?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29
ICEBERG IS VISIBLE NOW AND NOT JUST THE TIP.
The value of the dollar has further to fall, analysts say, and some argue it will sink much further before it’s all said and done. And that fall may come in concert with the global economic recovery economists and market analysts have been championing about since last year.
U.S. President Donald Trump’s proposed tariffs risk igniting a global trade war that could scuttle the market’s sanguine mood and hurt growth globally, analysts told Yahoo Finance. And nowhere is that fear of an undermined rally more evident than in the dollar’s value against the Japanese yen.
The dollar has fallen nearly 7% against the yen since its 2018 high on Jan. 8. That’s a nearly 34% annualized loss, according to data from Bloomberg. Read More @ https://finance.yahoo.com/news/dollar-warning-big-economic-slowdown-analysts-say-174250772.html
ECB AT THE SIDELINE – WAIT AND SEE ATTITUDE.
Mario Draghi’s progress toward a stimulus exit is likely to stay slow for now, with inflation too low for comfort and the global economy up against a trade-war-in-waiting. U.S. tariffs and retaliation by Europe and others could harm the outlook for the euro area, where exports have played a huge role towing the economy out of its slump. That could add to the European Central Bank president’s argument when he pushes back against some ECB officials lobbying for a change to policy guidance. Read More @ https://www.bloomberg.com//news/articles/2018-03-08/draghi-stares-at-trade-war-abyss-as-ecb-ponders-stimulus-outlook
WHAT IS USD INDEX SAYING? WAIT WAIT FOR NFP.
We maintain SELL for USD.
TODAYS’ NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES.
Expect the market to range today – as tomorrow is NFP (Non-Farm Payroll)
- 7.50am – Japan released their GDP and is all good – USDJPY is hanging at double bottom on the daily chart; tomorrow will be interesting to see what happens to NFP. We maintain SELL USDJPY when it breaks the double bottom.
- 8.30am – Australia related their Trade balance and is all good. AUD is a buy for now till tomorrow NFP.
- Tentative – China will release their Trade Balance and it will interesting to see the numbers – we believe is going to be good. We maintain SELL for USDCNH.
- 1.00pm – Japan will release Economy Watchers – important as it will give good volatility – we maintain BUY for JPY.
- 3.00pm – German factory order expected to be weak – but we believe the data will be good – we maintain BUY for EUR.
- 8.45pm – Interesting to see ECB on the rate – expected no change but asset purchase will be reduced.
- 9.30pm – ECN Conference – event of the night – expect good volatility for EURO – expected to hawkish for EURO. – https://www.bloomberg.com//news/articles/2018-03-08/draghi-stares-at-trade-war-abyss-as-ecb-ponders-stimulus-outlook
The market will exciting only at 8.30pm onwards when then ECB comes to action. Watch your money management at all times.
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