{"id":145455,"date":"2019-04-09T10:18:26","date_gmt":"2019-04-09T14:18:26","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=145455"},"modified":"2019-04-09T09:59:54","modified_gmt":"2019-04-09T13:59:54","slug":"safe-havens-rally-on-fresh-trump-tariff-threats","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/04\/safe-havens-rally-on-fresh-trump-tariff-threats\/","title":{"rendered":"Safe Havens Rally On Fresh Trump Tariff Threats"},"content":{"rendered":"
April 9, 2019<\/div>
\r\n<\/div><\/div>

By <\/strong>Orbex<\/strong><\/a><\/p>\n

The European morning session on Tuesday saw mixed trading as the market continues to struggle with opposing themes of optimism around ongoing US\/China trade talks, fresh US tariff threats on the EU, ongoing Brexit uncertainty and firmer oil prices.<\/p>\n

USD Down Again<\/strong><\/h2>\n

The\u00a0US dollar continued its decline today<\/strong>\u00a0with the index trading lows of 96.54 as of writing, testing last week\u2019s lows, which for now is holding as support. Looking ahead to the US session today, we have another quiet data sheet, so not much action is expected, though we could see this USD drift continue.<\/p>\n

EUR Traders Wait for ECB<\/strong><\/h2>\n

EURUSD continues to take advantage of a weaker US dollar, trading highs of 1.1276 as the rally off the 1.1194 support level continues. The European data sheet remains light until the\u00a0ECB meeting on Wednesday<\/strong>\u00a0which is the key focus of the week. However, it\u2019s not likely to provide a platform for further EUR gains with the ECB likely to reaffirm its message of concern for the eurozone economy.<\/p>\n

Bizarre Brexit Buildup Continues<\/strong><\/h2>\n

In the UK, GBP has been less able to benefit from the weaker US dollar as confusion over Brexit continues to hamper investor sentiment. The\u00a0UK is currently due to leave the EU on Friday<\/strong>\u00a0without a deal unless it can reach one, agree on a longer extension or alternatively, cancel Brexit. GBPUSD trades 1.3084 last, still holding the 1.30 support level.<\/p>\n

Equities Lower on Fresh Trade Threats<\/strong><\/h2>\n

Equities prices have taken a brief pause in early trading today.<\/strong>\u00a0Despite optimism over the US\/China trade talks, the market is concerned by news of\u00a0Trump\u2019s fresh tariff threats on the EU<\/strong>\u00a0<\/a>in response to Airbus subsidies which he claims have harmed Boeing\u2019s sales. The USTR announced a list of $11 billion worth of EU goods which will come under tariffs if the WTO approves the move this summer. SPX500 is still well above the 2860.11 support but trading lower today at 2891.93 last.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t 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>

\r\n
\r\n
\r\n

<\/a>\r\n\t 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>

\r\n<\/div>\r\n

\r\n
<\/div>\n

Safe Haven Inflows Increasing<\/strong><\/h2>\n

As with yesterday, the\u00a0safe havens continue to be the strongest performers<\/strong>\u00a0with both gold and JPY extending gains against the US dollar. Despite\u00a0BOJ\u2019s Kuroda<\/a>\u00a0reaffirming the bank\u2019s commitment to maintaining an easing presence in light of ongoing global and domestic concerns, USDJPY continues to trade lower. Price is now close to testing the 111.10 support. Gold prices traded 1302.54 last, coming up just below yesterday\u2019s session highs.<\/p>\n

OPEC Cuts Driving Oil Higher<\/strong><\/h2>\n

Despite the knock to global risk sentiment,\u00a0oil prices continue their impressive rally<\/strong>. After blowing through the 63.40 level yesterday, prices are today climbing above the 64.36 August 2018 low. For oil, it seems the main driver continues to be the\u00a0ongoing OPEC production cuts<\/a>\u00a0along with expectations that cuts will be extended when the group meets next in June.<\/p>\n

Higher Oil Boosts CAD<\/strong><\/h2>\n

The Canadian dollar continues to benefit from\u00a0USD weakness as well as the rise in oil,<\/strong>\u00a0with USDCAD testing last week\u2019s 1.3294 low as of writing. The fresh rally in oil prices will be warmly welcomed by the BOC and traders will be keen to see how the bank acknowledges the situation at its next meeting.<\/p>\n

Trade Deal Hopes Keep AUD Supported<\/strong><\/h2>\n

AUD has also benefited from USD weakness. Despite the troubles in Europe,\u00a0AUD remains supported by optimism around a potential US\/China trade deal<\/strong>\u00a0which would be good news for Australian exporters. AUDUSD is now trading above last week\u2019s high at .7149 last.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex The European morning session on Tuesday saw mixed trading as the market continues to struggle with opposing themes of optimism around ongoing US\/China trade talks, fresh US tariff threats on the EU, ongoing Brexit uncertainty and firmer oil prices. USD Down Again The\u00a0US dollar continued its decline today\u00a0with the index trading lows of […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-145455","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145455","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\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=145455"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145455\/revisions"}],"predecessor-version":[{"id":145461,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145455\/revisions\/145461"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=145455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=145455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=145455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}