News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh88nOv https://t.co/pAhXFa1al2
  • The inside bar pattern occurs regularly within financial markets. Incorporating the inside bar strategy can enhance a trader's market analysis. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/aK98CEpfOH
  • Point 3 is not talked about enough. The bureaucratic - dare I say, Leviathan - in most universities is resulting in tuition prices skyrocketing without adding clear value to the students. https://t.co/WNZIORrfAk
  • Think #amzn will gap higher on Monday after Black Friday and the giant move to online shopping?
  • The exponential moving average (EMA) is a derivative of the simple moving average (SMA) indicator. Compared to the SMA, the EMA weighs recent price changes more heavily than later changes in price. Learn how to incorporate the EMA into your strategy here: https://t.co/w48c0xJXSX https://t.co/xFmhA7ZHqU
  • Traders in the Euro have a big decision to make this weekend: if EUR/USD hits 1.20, will it continue to advance, consolidate or fall back? Get your $EURUSD market update from @MartinSEssex here:https://t.co/8hAhguZcEA https://t.co/kwtatozp3z
  • The bullish engulfing candle is one of the forex market's most clear-cut price action signals for reversals and continuation. Learn more about this price action trading signal here: https://t.co/Yg6ecRZZNr https://t.co/9SdceNYUEK
  • The bull flag pattern is a great pattern to add to a forex trader's technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/yOEvLjKnct https://t.co/imv2PnapzH
  • Defensive stocks have proven critically important when navigating stock market volatility. Find out what are the most defensive stocks here:https://t.co/TMcbMALtbw https://t.co/mmldxxEtsc
  • Dollar Index has broken major uptrend support and risks accelerated losses into the December open. Get your $USD technical analysis from @MBForex here:https://t.co/Txo8l8S1f1 https://t.co/YLVzP95JH8
Trade War: No Respite for EURUSD as US-China Trade Talks Resume

Trade War: No Respite for EURUSD as US-China Trade Talks Resume

2018-05-17 13:30:00
Martin Essex, MSTA, Analyst
Share:

Trade talking points:

- The potential for a trade war continues to be a major influence on the FX markets as US-China trade talks resume in Washington.

- So far, that has done little to help EURUSD, which could well extend its recent losses.

Check out the IG Client Sentiment data to help you trade profitably.

And for a longer-term outlook take a look at our Q2 forecast for EUR.

Trade talks in focus as US and China meet

The potential for a trade war continues to overshadow the foreign exchange markets as US-China trade talks resume in Washington. They are expected to be tough and so far EURUSD remains under pressure and could well extend its recent losses.

EURUSD Price Chart, Daily Timeframe (Year to Date)

EURUSD price chart showing impact of trade war.

Chart by IG

Trade wars aside, the USD continues to benefit from its interest-rate advantage over German Bunds, the benchmark for Euro-Zone bonds, with the yield on the 10-year US Treasury note reaching a seven-year high above 3.1% before easing back a tad.

On the other side of the coin, Italian politics continue to be negative for the Euro, as does the relative weakness of the Euro-Zone economy. This all suggests further downside for EURUSD, although there is one warning signal on the chart above: the 14-day relative strength index, or RSI, is back below the 30 level that suggests the pair has been oversold.

Further reading on trade wars

At DailyFX we have published several articles on the subject that you might find useful. These include:

The Impact of Tariffs and Trade Wars on the US Economy and the Dollar

A War to Trade More, Not Less - What’s Behind US-China Tariffs

Why International Trade News Matters for Foreign Exchange Rates

US China Trade War & a Brief History of Trade Wars – 1900 until Present

Resources to help you trade the forex markets

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES