What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
Greenback heads south versus yen, after Trump’s threat to further increase duties on Chinese imports
On Friday, the evergreen buck headed south versus the Japanese yen in early trade today right after the US President Donald Trump told that he instructed American trade officials to consider extra duties on Chinese imports of $ 100 billion.
Donald Trump told that he instructed the US representative in trade negotiations to consider the possibility of imposing extra duties on imported products from China, the overall value of which accounts for $100 billion, and come up with a list of such products.
The president added that he instructed to consider extra duties on Chinese imports in the light of China's quite unfair retaliation. Nevertheless, he stressed that he’s always ready to negotiate trade relations with this Asian country.
Besides this he noted that China is used to unjustly getting intellectual property of the United States of America.
Now, the duties imposed by the US president for Chinese imports of $ 50 billion can be ramped up threefold to $ 150 billion.
It gave impetus to the Japanese yen as a currency-refuge, which traditionally attracts demand in times of economic uncertainty and vice versa.
As a matter of fact, the currency pair USD/JPY inched down from Y107.50 to Y107.00 from the beginning of Asian trading, although then the dive stopped.
So far, market participants are currently waiting for China's reaction as well as detailed comments by Trump.
In addition to the China-US trade issue, currency traders also paid much attention to data on jobs in the United States that is going to be uncovered on Friday. As average forecasts point out, in March the overall number of folks employed in the non-agricultural sector of the American economy edged up by 198 thousand after a jump of 313 thousand in February.
What will happen? US consumer confidence will be announced at 5:00 MT (GMT+3) on Tuesday, July 27…
The OPEC meeting and the US Nonfarm Payrolls rocked the market last week. The market is torn between optimism about the global economic recovery and concerns about the new coronavirus strains.
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.