Trump eyes tariffs on up to $60 billion Chinese goods; tech, telecoms, apparel targeted
A third source who had direct knowledge of the administration’s thinking said the tariffs, associated with a “Section 301” intellectual property investigation, under the 1974 U.S. Trade Act begun in August last year, could come “in the very near future.” While the tariffs would be chiefly targeted at information technology, consumer electronics and telecoms, they could be much broader and the list could eventually run to 100 products, this person said. The White House declined to comment on the size or timing of any move. Trump is targeting Chinese high technology companies to punish China for its investment policies that effectively force U.S. companies to give up their technology secrets in exchange for being allowed to operate in the country, as well as for other IP practices Washington considers unfair. Read More @ https://www.reuters.com/article/us-usa-trump-china/trump-eyes-tariffs-on-up-to-60-billion-chinese-goods-tech-telecoms-apparel-targeted-idUSKCN1GP2X8
JPY FOCUS – Deutsche says the Japanese yen is going to get a lot stronger
- The Japanese yen has rallied 5.9% against the US dollar this year.
- Deutsche Bank expects that trend to continue citing changes in fund flows, BoJ asset purchases and current valuations.
- It sees the USD/JPY falling to 100 this year before it finds support. Read More @ https://www.businessinsider.com.au/jpy-japanese-yen-outlook-deutsche-bank-forecast-2018-3
WHAT IS THE USD INDEX SAYING AFTER THE CPI DATA – STRONG SUPPORT. BUYERS ARE CATCHING LOW USD.
The USD should retrace back to $90 today and decide the next move – we maintain BUY USD.
NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES.
- 7.30am – Consumer sentiments is getting better in AUD and AUD stays stable. We stay neutral for now.
- 7.50am – Japan has improved machinery orders and looking good for growth and getting out of QE soon. We BUY JPY.
- 10.00am – China data is all good for AUD & NZD for upward movement and SELL USDCNH.
- 3.00pm – German Final CPI looks all good for another upward movement of the EUR.
- 4.00pm – Mario Draghi will talk – expect volatility – hawkish statement expected – We BUY EURO.
- 6.00pm – EURO will release Employment change and we are expecting good data – we BUY EURO.
- 8.30pm – Expect good volatility – we are expecting good data from US. We maintain BUY for USD.
Overall the market stays cautious before the FOMC next week. Do be mindful interest is expected to go up and USD will back in favor. Have good money management at all times.
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