British companies are planning to increase pay by 2.5% this year
This year, UK private-sector employers are planning to give staff a basic annual pay leap of 2…
Forex today: trade wars are expanding
- The US dollar is steady today. Yesterday the US currency managed to close near 90, however, it could not stick there and slightly fell. Now the greenback is standing at 89.80. Let’s see whether trade wars tensions will push it up or down. Moreover, today the market is anticipating ADP Non-Farm Employment Change (15:15 MT time) and ISM Non-Manufacturing PMI (17:00 MT time) data. The forecast of both is weaker than the previous figures. Let’s look if the actual is greater.
- Trade wars are not empty words. China has responded to US tariffs on its high-tech goods. According to China authorities, the country is planning to implement an additional 25 percent tariff on imports of 106 U.S. products. The tariff list includes soybeans, automobiles, chemicals and aircraft. Overall it will cost around $50 billion of U.S. imports. It is worth to say that the market did not expect such tough charges from China, especially on such important products as soybeans, and airplanes. However, tariffs will be implemented if only the USA enact their own after a period of public consultation.
- Gold rose based on the trade wars’ news. The yellow metal is climbing to 1,348. According to Rick Rule, a chief executive officer of Sprott U.S. Holdings Inc. (involved in the gold market for forty years), if trade wars expand, bullion has chances to surge to $1,400 - its highest level in five years. The most crucial drivers of the gold price is a confidence in the US dollar and the U.S. 10-year Treasury. As soon as they show negative figures, gold gains points.
- S. government debt prices declined as investors are worried about the escalation of the US-China trade wars.
Look at the table for a better visualization.
Source: CNBC
- The euro has lost some points, however, a bullish tendency is still actual. Today’s European data was not encouraging for the euro. The actual data were either the same or lower than the forecast.
- Trade wars worries did not leave out the Canadian dollar. The USD/CAD could not break the support at 1.28 and turned around. There are no important events for the Canadian dollar until Friday. Let’s wait whether trade wars tensions lift the USD/CAD pair. The resistance lies at 50.0 Fibonacci retracements.
- In the environment of uncertainty, investors are putting money into safe haven assets such as Japanese yen. The USD/JPY pair is trading near 106. The support lies at 105.60.
- Both main oil benchmarks Brent and WTI plunged. Trading above $68 a barrel Brent fell to $67.10, WTI declined from $63.55 to $62.55.
- No more important events were noticed for today. Follow the market news tomorrow with us.
Similar
British inflation jumps
The UK’s key inflation rate rallied in February, although stayed close to January's two-year minimum, assisting customers to preserve their spending power even as Brexit was still uncertain…
The Bank of England may support the GBP
The Monetary policy committee of the Bank of England will vote on the level of interest rate and release its monetary policy summary on March 21, at 14:00 MT time.
Latest news
Forex today: easing geopolitical tensions
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
Common currency ascends ahead of euro zone data
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
Greenback edges down
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…
Deposit with your local payment systems
