{"id":122464,"date":"2018-03-02T07:41:07","date_gmt":"2018-03-02T12:41:07","guid":{"rendered":"http:\/\/countingpips.com\/?p=122464"},"modified":"2018-06-01T15:42:17","modified_gmt":"2018-06-01T15:42:17","slug":"eurusd-announcement-of-us-import-tariffs-boosts-the-euro","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/03\/eurusd-announcement-of-us-import-tariffs-boosts-the-euro\/","title":{"rendered":"EURUSD: announcement of US import tariffs boosts the euro"},"content":{"rendered":"<div id=\"inves-2755352556\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">March 2, 2018<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By Gabriel Ojimadu, Alpari<\/strong><\/p>\n<div class=\"reviews-item__content\">\n<p><strong>Previous:<\/strong><\/p>\n<p>On Thursday the 1<sup>st<\/sup>\u00a0of March, trading on the euro\/dollar closed up. The pair dropped to the 157<sup>th<\/sup>\u00a0degree at 1.2155 on the back of a rising dollar. From there, the euro rebounded to reach 1.2273, marking a rise of 118 pips.<\/p>\n<p>The US dollar and US stock markets have taken a big hit from this announcement as it\u2019s seen by many to be threatening a trade war with the EU and China. President Trump has announced a 25% import duty on steel and 10% on aluminium.<\/p>\n<p>A spokesperson for China\u2019s Ministry of Foreign Affairs said that China would take its own protective measure should such duties be imposed, while the EU has also promised a firm response.<\/p>\n<p>The US stock market\u2019s decline of around 1.3% &#8211; 1.6% led to a mass closing of riskier positions on the Forex market. The safe haven assets (gold, Swiss franc, yen) all closed the day up. The euro, as a funding currency, also ended the day up against the dollar.<\/p>\n<p>As a result of all this, Jerome Powell\u2019s speech was given secondary importance. New York Fed President William Dudley said that he wouldn\u2019t rule out the possibility of 4 interest rate hikes this year.<\/p><div id=\"inves-2680261906\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p><strong><em>Economic data:<\/em><\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>USA &#8211; initial jobless claims (23 Feb): 210,000 (forecast: 226,000, previous: 220,000).<\/li>\n<li>USA &#8211; ISM manufacturing PMI (Feb): 60.8 (forecast: 58.7, previous: 59.1).<\/li>\n<li>USA &#8211; Markit manufacturing PMI (Feb): 55.3 (forecast: 55.9, previous: 55.9).<\/li>\n<li>Canada &#8211; Markit manufacturing PMI (Feb): 55.6 (forecast: 55.8, previous: 55.9).<\/li>\n<li>USA \u2013 personal income (Jan): 0.4% (forecast: 0.3%, previous: 0.4%), personal spending: 0.2% (forecast: 0.2%, previous: 0.4%).<\/li>\n<\/ul>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>10:00 Germany: retail sales (Jan).<\/li>\n<li>12:30 UK: PMI construction (Feb).<\/li>\n<li>13:00 Eurozone: PPI (Jan).<\/li>\n<li>16:30 Canada: GDP (Q4), GDP (Dec).<\/li>\n<li>18:00 USA: Michigan consumer sentiment index (Feb).<\/li>\n<li>21:00 USA: Baker Hughes US oil rig count.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/03021_5a98fab190bd6.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD hourly chart. Source: TradingView<\/p>\n<p>I correctly predicted a testing of the 157<sup>th<\/sup>\u00a0degree with a subsequent rebound. The price missed its target by a single pip. The imposition of tariffs on steel and aluminium by Trump pushed the euro up to 1.2288. At the time of writing, the euro is trading at 1.2278. The price is currently hovering around the 112<sup>th<\/sup>\u00a0degree. Having weighed all the pros and cons, I\u2019ve concluded that the euro\u2019s rise will continue to 1.2306. This scenario will go out the window, however, if the hourly candlestick closes below 1.2260.<\/p>\n<p>If European stock indices start trading up and the retreat to safe haven assets stops, the price will most likely return to the LB balance line. This would be the best scenario; a return to the LB at 1.2223.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: announcement of US import tariffs boosts the euro<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Thursday the 1st\u00a0of March, trading on the euro\/dollar closed up. The pair dropped to the 157th\u00a0degree at 1.2155 on the back of a rising dollar. From there, the euro rebounded to reach 1.2273, marking a rise of 118 pips. The US dollar and US stock markets have taken a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-122464","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/122464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=122464"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/122464\/revisions"}],"predecessor-version":[{"id":122466,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/122464\/revisions\/122466"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=122464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=122464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=122464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}