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
EUR/USD
Mixed
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/1G7CRsegRX https://t.co/i342ipPuvW
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/tHp0Nb3Tr5
  • USD/JPY is bucking the trend in USD weakness, tentatively putting it on a path towards higher levels. Get your $USDJPY technical analysis from @PaulRobinsonFX here: https://t.co/RnrBCFE3gt https://t.co/hTSdTcIwZY
  • The Canadian Dollar gained with government bond yields. Might USD/CAD find its way to current 2020 lows? Canada’s benchmark stock index, the TSX Composite, faces the March high.Get your $USDCAD market update from @ddubrovskyFX here:https://t.co/0Ba8E2S7vC https://t.co/JLUTzF6xlY
  • IG Client Sentiment is warning that the S&P 500, gold prices and AUD/USD could fall ahead as upside exposure accumulates. What are key technical levels to watch for next? Find out from @ddubrovskyFX here: https://t.co/YsBypn73vy https://t.co/erPb9HMRVc
  • The US Dollar could be readying to rise against the Singapore Dollar and Indonesian Rupiah ahead. Will USD/PHP and USD/MYR also follow this outlook? Find out from @ddubrovskyFX here: https://t.co/xvMPZha5SB https://t.co/P9QLmnY1Fg
  • The Euro has been struggling to maintain its upside momentum. Is EUR/USD readying to turn lower? EUR/AUD may be aiming to rise, but has EUR/CAD topped? Find out from @ddubrovskyFX here: https://t.co/vlJM3iQIYS https://t.co/8FGl10wDto
  • Third consecutive weekly gain in the #SP500 as of today's close, rising 0.63% #Fed balance sheet gained by 0.18% over the same period after shrinking -0.06% previously Generally speaking, the size of the b/s has remained more or less unchanged for a month https://t.co/0TrEA5RGmA
  • The outlook for gold might look a little tenuous at the moment, but this won’t be the first time a strong bull market has shown signs of a potential top due to short-term price action. Get your $XAUUSD technical analysis from @PaulRobinsonFX here: https://t.co/N8a84hRnHN https://t.co/jCEkFzCxEr
  • Well, I don't know who has had it worse this week: Barca or Kodak
US-China Trade War Accelerates, Prompts Only Limited Risk Aversion

US-China Trade War Accelerates, Prompts Only Limited Risk Aversion

2018-07-11 09:00:00
Martin Essex, MSTA, Analyst
Share:

US-China trade war headlines:

  • The US has threatened 10% tariffs on $200 billion of Chinese imports; China has warned it will respond.
  • That has led to a flow of funds into safe havens from risky assets.
  • However, the movement has been modest, implying that trader confidence remains relatively buoyant and that the downside for ‘risk on’ assets is limited.

Our trading forecasts for Q3 have just been published; you can find them here.

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

Trade war in focus

The prospect of an escalation in the US-China trade war is leading to gains for safe-haven assets at the expense on those, like stocks, seen as essentially risky. However, flows have been light so far, suggesting that trader sentiment remains positive and that the impact on markets will be relatively light.

AUDJPY is a key indicator of sentiment, with the Australian Dollar seen as a proxy for China and the Japanese Yen as a haven. That lurched lower in New York Tuesday but has since steadied, implying that market sentiment remains broadly positive and that traders should be wary about selling the pair aggressively.

AUDJPY Price Chart, Five-Minute Timeframe (July 10-11, 2018)

Latest AUDJPY price chart.

Chart by IG

US Dollar, Gold, JPY; Unfazed by US-China Trade War Escalation

However, the markets are also signaling that the ongoing trade war could affect world economic growth. The price of copper, which is nicknamed “Dr. Copper” because of its correlation with global growth, has slumped to its lowest level since July 2017 and is now in a clear downtrend.

Copper Price Chart, Daily Timeframe (June 22, 2017 – July 11, 2018)

Latest copper price chart.

Chart by IG

The price of crude oil, which also acts as a gauge of economic health is falling too after US Secretary of State Mike Pompeo said Tuesday that the US will consider requests from some countries to be exempted from sanctions it will put into effect in November to prevent Iran from exporting oil.

More to read on trade wars

US-China Trade War: An Inevitable Conflict and the Impact on Equities, FX

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

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.