Fed Chair Jerome Powell will testify today at 19:05 MT time. This event is crucial for traders as the tone of the speech may set the risk tone for the markets for the next two weeks.
China imposes extra duties responding to American tariffs on aluminum and steel
China has already imposed additional duties of 25% on up to 128 American products including certain nuts and fruits, wine and frozen pork, thus responding to American tariffs on imports of steel and aluminum, as the Asian country’s financial ministry uncovered on Sunday.
China's Ministry of Commerce told that it had its obligations to the World Trade Organization suspended with the aim of diminishing duties on 120 American goods. The duties on those products are going to be raised by an additional 15%.
Besides this, eight other products, such as pork are going to be subject to extra duties of 25%, and with the measures coming into effect on April 2.
China has had to impose the extra duties in the face of strengthening trade tensions between China and the United States, driving worries of a devastating trade feud between the world's two leading economies.
Donald Trump is geared up towards imposing duties of more than $50 billion on China’s goods intended to punish China over American accusations that this Asian country constantly misappropriated US intellectual property, although such allegations are denied by the Chinese government.
China has frequently pledged to proceed with opening its economy, although a great number of foreign companies keep complaining of unfair treatment. Besides this, on Thursday, China warned America not to open a Pandora's Box sparking a storm of protectionist practices throughout the world.
In a statement released on Monday, MOFCOM told that America had heavily violated the very principles of non-discrimination engraved in World Trade Organization rules. What’s more, the United States had severely affected China's interests.
MOFCOM told that China's suspension of several obligations to America appears to be its legitimate right as a member of the WTO. They also stressed that differences between the two leading countries need to be resolved via negotiation and dialogue.
Non-farm payrolls, the most awaited economic report, will be out on March 5 at 15:30 MT time.
Australian GDP rose by 3.1%, exceeding analysts’ forecasts of 2.5%. The Australian dollar climbed after the release, but then joined its peers in falling against the USD.
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.