The US authorities filed a lawsuit against Facebook - what are the implications?
The US-China trade war escalates
Good Friday, traders! Let's start with the updates from the US-China trade war's front. Yesterday, US President Donald Trump announced an additional 10% tariff on the remaining 300 billion dollars of goods and products since September 1. China, in its turn, said about countermeasures needed as a response to this unexpected move. As a result, the risk-weighted assets dropped significantly.
- The Australian dollar and the New Zealand dollar have seen huge moves to the downside. AUD/USD is currently trading at the lowest levels since January's flash crash.
- Safe-haven Japanese yen has strengthened. USD/JPY has been targeting support from June 25 at 106.76.
- USD/CNH has risen to the highest levels since last November. The pair is currently trading at 6.9718.
- Gold retested its recent highs at $1,448.
- As for exotic currency pairs, USD/MXN and the USD/ZAR jumped higher, while USD/BRL gapped up above the 50-day SMA since the start of today's trading session.
The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.