Fundamental Analysis

US-China Trade War yesterday’s news

Published on 2018-09-21 09:24 Share

The US stock markets catapulted to a new record high on Thursday as investors continued to sidestep fears over the escalating global trade war and instead focused on a boomy American economy. And at least for today anyway, US-China trade war was yesterday’s news. Make no mistake the US economy is running on all cylinders, robust growth, soaring employment and rising capital investments. Suggesting the healthy US economy is more than just a short-term knock-on effect from the intravenous elixir of easy credit and fiscal glucose. The US economy is thriving. Meanwhile, six months into the U.S. tariffs on imported aluminum and steel, Caterpillar Inc is finding that one of the best ways it can protect profits is a cost cutting strategy that is more than two years old.

The EUR/USD was toying with the market all week, and finally, the dollar bears got the bravado to take on the 1.1730 level which predictably triggered a cascading effect to 1.1780. Regarding GBP/USD, heads into today's London market open sitting just below recent swing highs, with Thursday's peak of 1.3298 sitting close by. Limited data for Friday will see continued focus given to Brexit talks, which see cold water beginning to splash on hopes for a peaceable workaround. Trump called on the OPEC to lower prices, saying on Twitter "they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices."

In commodities, Gold is quiet while modestly reacting to the weaker dollar but surging US Bond yields are holding back speculators and not to mention there’s nary a hedger insight with US equity markets rising above all-time high-water marks. Regarding Oil, prices were mixed today after falling in the previous session as U.S. President Donald Trump urged OPEC to lower crude prices ahead of its meeting in Algeria this weekend.

For today the main economic calendar activities is the Canadian CPI m/m and Core Retail Sales m/m.

More Posts

Eyes on SNB, UK retail sales 2018-09-20 10:11

 Global indexes pull the Asian stocks, as investors took a less bearish view on the impact of the U.S.

BoJ Kept Its Benchmark Interest Rates-Trade war continues. 2018-09-19 09:39

Asian equities extended rally in afternoon trade as markets continued to recover from trade war fears. The dollar slipped after Beijing announced retaliatory tariffs that targeted more than 5,000 U.S. products worth $60 billion.

US - China trade wars have restarted, eyes on ECB Draghi’s speech 2018-09-18 09:33

Market has started the day witnessing a recovery in risk-appetite from the overnight risk slump caused by the US announcement of slapping Chinese imports with 10% tariffs

Markets focus on new US Tariffs Announcement 2018-09-17 09:32

Amid a broad-based US dollar bullish consolidation in Asia, market today has a sense of caution prevalent as the new US tariffs announcement looms that led to the sell-off in the Chinese equities.

Dollar dips after weak U.S. data, Turkish hike supports emerging currencies 2018-09-14 09:37

Dollar dips after weak U.S. data, Turkish hike supports emerging currencies

Gold Prices trade lower Amidst US-China trade war 2018-09-12 09:56

Asian stocks slipped to 14-month lows on Wednesday with investor confidence chilled by the latest round of verbal threats in an intensifying U.S.-China trade conflict

GBP in the Spotlight on Brexit Talks 2018-09-11 10:54

Asian shares were struggling to avoid a ninth straight session of losses on Tuesday as the spectre of a further escalation in the Sino-U.S. trade war haunted investors, while the pound perched at a five-week top on hints a Brexit deal might be nearer

Dollar edges higher as trade tensions keep markets on edge 2018-09-10 09:39

Asian shares started the week in the red, faltering for the eighth straight day while the dollar climbed as U.S. President Donald Trump raised the stakes in the heated trade dispute with China