{"id":152880,"date":"2019-08-05T11:30:59","date_gmt":"2019-08-05T15:30:59","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=152880"},"modified":"2019-08-05T11:09:35","modified_gmt":"2019-08-05T15:09:35","slug":"markets-rocked-by-fresh-trade-tariffs","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/08\/markets-rocked-by-fresh-trade-tariffs\/","title":{"rendered":"Markets Rocked By Fresh Trade Tariffs"},"content":{"rendered":"
August 5, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

USD Lower<\/strong><\/h2>\n

The US dollar has begun the week under pressure<\/strong>\u00a0as markets recoil in response to news of fresh trade tariffs, announced last week, by President Trump.\u00a0Trump revealed a new 10% tariff on a further $300 billion of Chinese goods due to start on September 1st<\/sup>.<\/strong>\u00a0China has said that it will retaliate to this latest move from the US. Already today we have seen a sharp weakening in CNH with USDCNH trading up past 7 for the first time since the GFC. USD Index trades 97.60 last as the rejection from 98.26 continues.<\/p>\n

Euro Rallies on USD Weakness<\/strong><\/p>\n

EURUSD has benefited from the sell-off in USD so far today. Price has rallied strongly back above the 1.1112 level to trade 1.1151 last.\u00a0The collapse in European equities is also helping support EUR as investors buy back their EUR hedges,<\/strong>\u00a0a theme which looks likely to continue in the near term.<\/p>\n

GBP Stable<\/strong><\/h2>\n

GBPUSD has been a little more subdued today, though remains supported just above the 1.2078 level so far today.<\/strong>\u00a0Price tested the level last week, finding support at the supporting bearish trend line running from mid-2018 lows. Last week, the BOE cited increased Brexit risks as a severe threat to the UK economy and no doubt the uptick in trade ware tensions will be closely watched also.<\/p>\n

Risk Assets Crumble<\/strong><\/h2>\n

Risk assets have been knocked heavily lower again this week as the reaction from last week\u2019s US tariff announcement continues.<\/strong>\u00a0SPX500 has collapsed back below the 2958.22 level to test the bullish trend line from last year\u2019s lows around the 2890.56 level. Price has found support here for now though the prospect of further losses remains high.<\/p>

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JPY & Gold Rally<\/strong><\/h2>\n

Safe havens have had a strong start to the week given the broad wave of risk aversion sweeping the markets.<\/strong>\u00a0Both JPY and\u00a0gold have rallied against<\/a>\u00a0the USD which has come under pressure since Trump\u2019s trade war tweet last week. USDJPY trades 106.14 last, with price sitting just above the 105.55 support. XAUUSD trades 1457.47 last, its highest level since early 2013.<\/p>\n

Crude Holds On<\/strong><\/h2>\n

Oil prices have remained surprisingly well supported over the European morning on Monday.<\/strong>\u00a0Following a sharp sell-off<\/a>\u00a0last Thursday, prices have since stabilized and remain well bid around the 54.90 level. Last week, the EIA reported a seventh consecutive week of decline in US crude stores, which is helping underpin price for now. The weakness in USD this morning is also helping keep oil afloat despite the latest increase in trade war tensions between the US and China.<\/p>\n

Commodity Currencies Capped<\/strong><\/h2>\n

USDCAD has been a little higher today, despite the weakness in USD and oil.\u00a0The increase in trade war tensions is weighing on CAD at the start of the week.\u00a0<\/strong>This is helping keep USDCAD well supported above the 1.3207 level, with price trading 1.3237 now.<\/p>\n

AUDUSD is trading with a heavy tone today.\u00a0The shock uptick in trade war tensions between the US and China, which is Australia\u2019s largest trading partner, has weighed heavily on AUD.<\/strong>\u00a0Price has broken down to its lowest level since 2009 this morning as risk assets have been heavily unwound.<\/p>\n

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

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

By Orbex USD Lower The US dollar has begun the week under pressure\u00a0as markets recoil in response to news of fresh trade tariffs, announced last week, by President Trump.\u00a0Trump revealed a new 10% tariff on a further $300 billion of Chinese goods due to start on September 1st.\u00a0China has said that it will retaliate to […]<\/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-152880","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152880","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=152880"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152880\/revisions"}],"predecessor-version":[{"id":152891,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152880\/revisions\/152891"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=152880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=152880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=152880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}