US-China trade war seems to escalating
The Chinese government seems to look for permission from the World Trade Organization (WTO) in order to impose sanctions on the U.S according to the WTO’s meeting agenda.
Escalating trade tensions between the US and China are in focus for the past month. President Donald Trump said last week he was “ready to go” on tariffs for another $267 billion on Chinese goods “if he wants.”
The plan is to impose tariffs on $200 billion of Chinese goods in many industries, including technology. China has promised to take counter-measures if the U.S. administration takes this aggressive path on trade. China’s World Trade Organization request states that the U.S is non-compliance with a ruling in a dispute over U.S. dumping duties. It will most probably lead to years of legal fights over the sanctions. China will look for permission to act at a special meeting of the WTO’s Dispute Settlement Body on Friday, September 21.
A new hit in Asia on fresh trade woes
Today the Asia sentiment was on the Risk-off side as the financial markets reacted to fresh trade tensions around the US and Japan. That created a fear in the market and stopped the demand for the higher-yielding/ risk assets. The Asian stocks dropped to more than a year low while the greenback caught a new fresh uptrend and recovered its previous losses across its main competitors.
The Yen bulls regained their bullish appetite, pushing the USD/JPY pair lower to 111.49 level. The EUR and the pound were under pressure, even though the new Brexit optimism was in focus with UK jobs data. At the same time, the CAD and oil got support from some progress on the NAFTA talks. Gold prices, on the other hand went down, below the $ 1200 mark, as Fed’s tightening plans continue to weigh.
Bitcoin back in the red
Bitcoin went down by about 0.34% yesterday, partially giving back Monday’s 1.43% gain and finally ended the day at $6,292.2.
We had a small retrace to the bullish side at the start of the day and we saw the popular coin (Bitcoin) hit an early morning intraday high at about $6,399.5 before reversing. Now we see Bitcoin coming up against the first major resistance level at $6,396.10 to send it back from a move through to $6,400 levels for the first time since last week.
The morning sees Bitcoin falling through the day’s first major support level at $6,241.40 to an early afternoon low $6,170 before finding a support. Bitcoin managed to recover to $6,300 levels late in the day before falling back to $6,200 levels. The afternoon recovery cutting Bitcoin’s loss for the day is just 0.36%.
EUR/USD: Euro it is wise to wait for a potential breakout
The Euro is trading didn’t change much. We find the popular currency on the downside just below 1.1600 level as investors are awaiting tomorrow’s ECB meeting.
The economic calendar will give us the Eurozone industrial production and the Fed governor Brainard speaking in the US. Now on the technical level, the EURUSD has been trading in a range between the 50% and the 23.6% Fibonacci retracement level of about 1.1300-1.1740 recent upsurge. It would be wise to wait for a breakout through the above range before positioning for the next directional move. Yesterday’s rejection sends the pair down from above a short-term trend-line, forming a part of a bearish triangle chart pattern.