Trump ignites the trade war with China and Gold to 1280 level
Asian equities retreated into the red during the Asian trading session following renewed worries about the global trade war. Last week, the US administration stated that it would impose a 25% tariff on more than 800 Chinese goods, with Beijing reacted in a tit-for-tat manner.
The Asian trading session economic releases came from Japan was promising. Exports soared at their highest annualized pace for four months in May according to the official announcement, while the overall trade gap was worse than expects thanks to a sharp increase in import.
The releases mentioned above were not enough to pull stock markets out of slumber, with the Nikkei 225 down 0.9%, while other equities were in the red too, with the sole exception of the ASX 200, which stayed up thanks to strength in the banking sector.
Asian equities retreated to a 2.5 week low following US President Donald Trump increasing up the trade tensions by moving on with tariffs on Chinese imports, which prompted Beijing to respond in kind immediately.
US President Donald Trump has imposed vast tariffs on $50 B of Chinese imports on Friday and has played a list of more than 800 strategically vital imports from China that would be active to a %25 tariffs, which would be active on July 6.
Commodities reflected the overall risk aversion with oil prices being the victim of profit-taking ahead of this week’s OPEC summit in Vienna. Gold is up by 0.13% to $1,280.13, U.S. WTI is down by 0.67% to $63.81, and Brent crude oil is down by 0.55% to $72.64
Outlook: In the absence of crucial macroeconomic releases in the Euro-zone today, investors would keep a close watch on the US NAHB housing market index for June, set to release later in the day.
Trader’s View: EURUSD: EUR/USD’s sharp fall last week suggests that corrective rise from 1.1510 has completed at 1.1850 already.
GBPUSD: GBP/USD’s steep decline last week suggests that correction from 1.3205 has completed at 1.3470 already.
USDCAD: Intraday bias in USD/CAD remains on the upside.
USDCHF: USD/CHF’s strong rebound last week suggests that corrective pull back from 1.0055 has completed at 0.9785 already.
USDJPY: USD/JPY continues to lose upside momentum, with 109.90 minor support intact, further rise is mildly in favor for 113.40 resistance.
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