Trade wars and risky currencies

6 July, 2018

Traders might be wise to avoid the riskier currencies and park their money into stronger one’s such as the US dollar or Japanese Yen as the US gets ready to introduce tariffs on a range of Chinese goods which threatens to spark a full on trade war and send shockwaves through the global economy.

From today, the US government  will introduce a new tax on more than 800 Chinese products with a market value of $US34 billion per  year on claims that the Chinese government engages in unfair trade practices which are currently hurting American business.

China is poised not to take this lying down and has vowed to retaliate with 25 per cent  tariffs of their own on US products worth $US34 billion per year which will hit industries in the US such as oil and seafood exports.

Chinese ministry of Commerce spokesman Gao Feng warned that US proposed U.S. tariffs would hit Chinese businesses hard and there was still time for the US to rethink the situation

“If the U.S. implements tariffs, they will actually be adding tariffs on companies from all countries, including Chinese and U.S. companies,” Mr Gao said.

“U.S. measures are essentially attacking global supply and value chains. To put it simply, the U.S. is opening fire on the entire world, including itself. China will not bow down in the face of threats and blackmail and will not falter from its determination to defend free trade and the multilateral system.”

The chances of the US backing down from introducing the tariffs t is close to zero according to most analysts so the market better be ready for some wild swings and in conditions as uncertain as this the US dollar usually benefits.


Source link  
Gold need to hold this level

The gold price is now trading at its lowest level since the start of the year and is now consolidating around the $1275 mark and according to one...

Gold faces key moment

The gold price has remained above the $1300 mark in today's trading session after breaking this important level yesterday and today's outcome...

US dollar down on dovish Fed

As predicted yesterday, the Fed kept interest rates on hold but the following monetary statement was much more dovish than analysts had predicted...


Gold needs some big news

The gold price is under further pressure in today's trading session as investors ponder the chances of another rate hike from the US Federal Reserve after the release...

Good news for the precious metal

Gold just got another reason to cheer after the latst minutes meeting from the US Federal reserve where the tone left many analysts predicting that...

Gold to stay above $1300

The gold price has recovered strongly over the past 3 trading sessions after coming perilously close to touching the $1300 mark and...


Oil price hinges on trade talks

Oil is down once again in today's trading session as investors and the market alike remain divided on the future direction of the price with a lot...

Oil needs Opec cuts

The latest tumble in the oil price has now reached gigantic levels, almost equaling the declines reached during the global financial crisis and according to some analysts, we may...

Gold price has rallied sharply

A declining stock market is always good for gold as investors look for somewhere safe to ride out the uncertainty. Precious metals are seeing buying...

  


Share it on:   or