The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!
China prepares retaliatory duties on American imports
China is about to uncover a list of retaliatory duties on American exports to China with the aim countering an expected announcement from America of proposed new duties on China’s imports, as the Global Times informed on Wednesday.
The Chinese list is going to target a huge number of major American imports to this Asian country, as the English-language editorial disclosed.
Trade clashes between the two nations sparked the previous week after Donald Trump imposed duties on aluminum and steel imports and also revealed plans for duties on $60 billion of China’s goods.
Alarm over a probable trade conflict between the world's two leading economies has cooled financial markets. It’s due to the fact market participants anticipated negative consequences if trade barriers are lifted because of Trump's bid to diminish the American deficit with China.
Financial markets are currently awaiting the United States to have a list of Chinese products unveiled, which could be targeted with extra duties after an American inquiry accusing China of unfair trade and intellectual property theft.
Compared to China's list, the American one hurts itself more than this Asian country. It’s obvious that the tougher the move, the greater the impact on the United States, as the Global Times revealed in its editorial.
The tabloid outlet stressed that it’s going to deliver a tough blow to the United States wielding the stick of trade conflict in the hawkish way. It will make the United States pay a price for its irrational trade policy toward the world’s number two economy.
Besides this, the Global Times told that the United States turned to be naive to think it could urge China to agree to their fierce demands because China's economy is steady and firm. What’s more – China has successfully endured such hits from previous US presidential administrations.
What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.