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  
IEA report siks oil

The oil price had a rough time last week, hitting its lowest level since join after a report by the energy watchdog showed rising inventories which raises concerns over global growth...

Gold in the hands of the US dollar

The last 2 months has been extremely painful for those who invested in gold with the precious metal plummeting more than $100 and at the time...

Is Yen finished as a safe haven currency?

Along with the Swiss Franc, the Japanese Yen has historically been the other currency that the market has deemed a safe haven in times of financial instability...


Trump may drive down the oil price

The oil price has risen around 13 percent over the last 10 days which has pushed up gasoline prices in the US to uncomfortable levels and with elections...

Fed will dictate the gold price

After bouncing off a more than 6 month low in yesterday's trading session gold has continued to drift higher today, and some say for the precious metal to make...

Is gold loosing its safe haven status?

Gold maybe losing its status as a safe haven asset according to some analysts after failing to capitalize on recent events happening around the world...


Trump's moves may pressure oil

After hitting a 3 year high a little less than 2 weeks ago, the oil price has tumbled nearly 10 percent and things may be set to get worse as Saudi Arabia...

Gold receives a double boost

The gold price has received a significant boost over the past few trading sessions on the back of economic and Geo political developments which may...

Can gold finally breakout?

The gold price received a much-needed boost yesterday after disappointing data from the US hit the market which cast doubts over the state of the US economy...


In the past 24 hours Bitcoin has lost -3.18% and reached $6305.95963982. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.2108% and is now at $1.1431. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -2.02% and is now at $274.160647954. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets89%
2FXTMFXTM87%
3HYCMHYCM85%
4FxProFxPro80%
5FIBO GroupFIBO Group77%
6FXCMFXCM73%
7AvaTradeAvaTrade68%
8HotForexHotForex67%
9Alfa-ForexAlfa-Forex66%
10XMXM66%
  


Share: