Forex today: more pressure on trade wars’ issue
A new week has started with a plenty of events. Let’s look closer.
- Stocks showed the mixed data as Apple Inc. is going to make a great investment in the development of next-generation MicroLED screens. This news hit Japanese producers.
- The US dollar is slightly rising ahead of the interest rate’s release on this Wednesday at 20:00 MT time.
- The yen is continuing to rise against the US dollar as a nationwide survey showed a decline in support for the cabinet of Prime Minister Shinzo Abe. The cabinet is aimed at the weak Japanese currency. Let’s look at the chart. The USD/JPY pair could not break the support at 105.60, where the 61.8 Fibonacci Retracement lies and rebounded a little bit above it. Now USD/JPY is trading below 106.
- The Euro cannot resist the greenback. The pair is converging to the support at 1.2260. However, it could not hit it on Friday, so maybe today the euro will be lucky and will rebound from the support again.
- Brussels published US tariffs retaliation lists. Products included in the list worth €2.8 billion. The EU is ready to implement tariffs of 25% at any moment after the WTO gives a green light.
- Trade wars will affect such currencies as AUD. So the Australian dollar has already reacted to the Brussels’s list. The AUD/USD pair broke the support at 0.7710 and plunged further. The pair is trading near 0.77. The next support is at 0.7650.
- Today the G20 Summit has started to work in Buenos Aires. During two days, finance ministers and central bank governors will discuss a monetary policy of central banks, and regulation of a cryptocurrency market. More likely, that trade wars and US protectionism will not remain unaddressed.
- David Malpass, Undersecretary for International Affairs, added more doubts to the issue of relationships between the US and China. He said that he misspoke when he declared that the USA had discontinued the U.S.-China Comprehensive Economic Dialogue. He added that Treasury Secretary Steven Mnuchin continues to engage senior Chinese officials in private, personal discussions “in order to try to bring the focus back to market liberalization.”
- Bitcoin is recovering. The digital currency could return its positions a little bit after the fall to $7,200 – the biggest one since the beginning of February. Now the cryptocurrency is trading near $8,300.
- There are no significant changes in other currencies’ movement and no important data in next few days.
The level of GDP growth for Canada will be published on June 28, at 15:30 MT time.
Read and find out the market movers
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Monday, gold declined because the evergreen buck managed to gain early traction, thus putting pressure on the most popular precious commodity, which has been sticking with the year’s minimums…