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Forex Preview: USD Loses Steam as Trump Imposes New Tariffs

USD Loses Steam as Trump Imposes New Tariffs

1. USD Loses Steam as Trump Imposes New Tariffs

The USD lost a lot, but most of its counterparts were not able to take advantage much given their own weaknesses. The EUR recovered but still below the key 1.11 making it possible to turn lower at any given moment should USD find support. The AUD is another example of a currency pair that appears way weaker than USD and hardly benefit from USD selling waves.*

2. Markets Plummet

Global bourses edged sharply lower after President Donald announced yesterday that he would impose a 10 per cent tariff on another $300 billion worth of Chinese goods on Sept. 1, after a meeting of U.S. and Chinese trade negotiators in Shanghai failed.**

3. Safe Havens Rally

A wave of risk-off selling took over the markets, pushing stock markets globally heavily lower, while the USD also lost some steam which helped support safe havens significantly. Gold benefited strongly on safe-haven inflows and looks like it may see higher levels from here easily. Today’s NFP out of the US could further intensify the drop in equities if they come in strong and give the Fed no further reason to consider more rate cuts.**

Don’t miss BDSwiss’ Free Live NFP Webinar at 12:30 GMT. Register here

4. BoE Pushes GBP Lower

In other news, the Bank of England warned yesterday economic growth had probably flattened, weighed down by global concerns and uncertainty over the coming departure from the European Union. Still, the bank decided to keep its benchmark interest rate at 0.75 per cent. GBP/USD tumbled to as low as $1.2092 in early Friday trading.***

5. Oil Prices Recover After a Steep Drop

Oil prices had its biggest drop in years with -7% on the day on intensified trade war angst which may push oil lower going forward. Oil prices rose more than 2%, after suffering their biggest one-day fall in years the previous day following further U.S. tariffs on China, intensifying trade tensions between the world’s two biggest economies and crude consumers. Bitcoin came back above the 10k level on a daily close and is now pushing against the daily Ichimoku cloud from the downside. A close above 11k on the day would be seen as very bullish.***

 You can find and trade CFDs on all of the above-mentioned assets on BDSwiss Forex/CFD platforms.

Sources:
*FXStreet Aug 02, 2019 03:07 AM ET
**Reuters Aug 02, 2019 3:53 AM ET
***CNBC Aug 02, 2019 2:48 AM ET


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