{"id":152853,"date":"2019-08-05T08:10:16","date_gmt":"2019-08-05T12:10:16","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=152853"},"modified":"2019-08-05T07:31:44","modified_gmt":"2019-08-05T11:31:44","slug":"trumps-surprise-tariff-threat-sinks-markets","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/08\/trumps-surprise-tariff-threat-sinks-markets\/","title":{"rendered":"Trump\u2019s Surprise Tariff Threat Sinks Markets"},"content":{"rendered":"
August 5, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

US President Trump\u2019s announcement on\u00a0additional tariffs<\/strong>\u00a0on new import products from China last Friday shocked the markets. All related asset classes fell significantly lower as\u00a0risks amid China\u2019s retaliation increased<\/strong>. With the Nonfarm payrolls disappointing and a rather quiet week on the US economic calendar, the\u00a0dollar could weaken further.<\/strong>\u00a0Treasury yields seem to be pricing in another rate cut.<\/p>\n

Dollar Falls on Market Reaction<\/strong><\/h2>\n

With investors running to safety due to increasing trade escalation between the US and China,\u00a0markets have remained highly risk-averse<\/strong>\u00a0since last week. Following a rather\u00a0poor NFP<\/strong>\u00a0release last Friday, the slide on the common currency pair is likely to persist to lower levels. A chance for a breather could appear after today\u2019s ISM NMI release, where economists expect an expansion from 55.1 to 56.4.<\/p>\n

USDJPY Heads Towards Fresh 2019 Low<\/strong><\/h2>\n

The\u00a0breakout below the 78.6% Fibonacci<\/strong>\u00a0retracement near 106.60 this morning\u00a0revalidates the initial market response<\/strong>\u00a0following Trump\u2019s announcement<\/a>. With no lower support near the said level, the 2019 flash-crash low of 105 comes back on the investors\u2019 radar. This will remain the next major support until a downside breakout takes us to 104.60.<\/p>\n

\"USDJPY\"<\/a><\/p>\n

Gold Reaches May 2013 High<\/strong><\/h2>\n

Increased tensions in the Middle East<\/strong>\u00a0and trade war escalations are likely to keep market participants closer to safe-haven assets. With chances of a\u00a0September rate cut increasing<\/strong>\u00a0and central banks looking to accommodate as much as needed.\u00a0Gold is likely to extend its up move<\/strong>\u00a0in the coming days, and perhaps even for the medium term.<\/p>\n

XAUUSD Could Retrace A Tad Lower<\/strong><\/h2>\n

The price\u00a0extension to 1460<\/strong>\u00a0this morning really shows off this week\u2019s market sentiment.\u00a0Following a breakout<\/a>\u00a0above last month\u2019s high at 1453,\u00a0investors now eye the 1475<\/strong>\u00a0level, reached in April 2013. With a retracement expected to weigh on the exchange rate, a\u00a0short-term decline can be expected<\/strong>\u00a0from intraday flows, but nothing that could change the longer-term outlook.<\/p>

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Oil Turns Lower By Trade War Narrative<\/strong><\/h2>\n

The\u00a0oil markets were hit hard<\/strong>\u00a0last week, sliding lower amid a poor API report on weekly crude oil inventories and by Trump\u2019s sudden trade shift against China. With new tariffs adding\u00a0concerns about oil demand<\/strong>\u00a0and the ISM manufacturing worsening,\u00a0oil prices could dampen<\/strong>\u00a0lower in the short and mid-term.<\/p>\n

WTI Could Break Down to Fresh Lows<\/strong><\/h2>\n

With oil prices failing to fall outside the ascending channel investors now will keep a\u00a0close eye at 54.85<\/strong>support. The 3-week low at 53.62 will be the next minor support should bulls weaken their bets, but this level could be still a few days out of reach given the\u00a0stochastic is oversold.<\/strong><\/p>\n

\"WTI\"<\/a><\/p>\n

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

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

By Orbex US President Trump\u2019s announcement on\u00a0additional tariffs\u00a0on new import products from China last Friday shocked the markets. All related asset classes fell significantly lower as\u00a0risks amid China\u2019s retaliation increased. With the Nonfarm payrolls disappointing and a rather quiet week on the US economic calendar, the\u00a0dollar could weaken further.\u00a0Treasury yields seem to be pricing in […]<\/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-152853","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152853","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=152853"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152853\/revisions"}],"predecessor-version":[{"id":152859,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152853\/revisions\/152859"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=152853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=152853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=152853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}