Markets feared Trump would light the fuse on a trade war, and maybe he just did
- Stocks sold off sharply and investors moved into the safety of bonds, after President Donald Trump said he would put tariffs on imports of steel and aluminum.
- Analysts said the tariffs were not in themselves signs of a ‘trade war’ but could be a catalyst to spur one if other countries around the world retaliated.
- The tariffs could create inflation as industries pay more for products made with steel or aluminum and pass the costs to consumers. Read More @ https://www.cnbc.com/2018/03/01/markets-feared-trump-would-light-the-fuse-on-a-trade-war-and-maybe-he-just-did.html
Dollar falls to two-week low vs. yen, slides vs euro after tariff news
The dollar fell to two-week lows against the yen and dropped from seven-week highs versus the euro on Thursday on fears of an imminent trade war after President Donald Trump said the United States would impose tariffs on steel and aluminium. Read More @ https://www.reuters.com/article/us-global-forex/dollar-falls-to-two-week-low-vs-yen-slides-vs-euro-after-tariff-news-idUSKCN1GD3KR
USD INDEX TECHNICAL CHART.
The demand for USD will diminish if the US goes hard on trade protectionism; USD stares at $90.
Todays NEWS that might affect your Technical Trades;
- Trump is pushing towards trade war and he is going ahead next week – USD goes under pressure.
- 7.30am – Japan core CPI stays strong; we maintain SELL for USDJPY.
- 3.00pm – EURO will go to action with German Retails sales and Import Prices data – we believe the EURO have started the rising sun as the global market looks towards Europe and China for more trade rather then the US who has moved towards protectionism.
- Today – be alert if you are trading the GBP pairs as Theresa May will speak and will create volatility – PM’s speech puts stress on ‘tolerant democracy’ in overture to EU remainers while also attempting to calm Tory rebels Read More @ https://www.theguardian.com/politics/2018/mar/01/may-overture-to-eu-remainers-puts-stress-on-tolerant-democracy
- 6.00pm – Mark Carney will address the market – once again GBP focus. We maintain buy for GBPUSD.
- 9.30pm – Canada will release their GDP and we are expecting a good data; we maintain SELL for USDCAD.
- 11.00pm – The night will end with UoM Consumer and Inflation data releases – we believe the data will be weak or no change – we maintain SELL for USD.
The market has moved fundamentally against all technical charts – we believe the recent rise of the USD is temporary and we believe there is more downside for the USD. Observe good money management at all times.
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