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.

Free Trading Guides
EUR/USD
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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.00% 🇬🇧GBP: -0.45% 🇨🇭CHF: -0.59% 🇳🇿NZD: -1.01% 🇦🇺AUD: -1.17% 🇨🇦CAD: -1.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/T4HOBphWrG
  • Have you been catching on your @DailyFX #podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/07GFNDWDHA
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Germany 30: -2.80% Wall Street: -2.87% US 500: -2.92% France 40: -3.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/JQzaEQVMD8
  • GBP/USD Price Recovery is at Stake – Levels & Thresholds to Keep in Focus More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2020/04/01/BPUSD-Price-Recovery-is-at-Stake-Levels-Thresholds-to-Keep-in-Focus--MK.html?CHID=9&QPID=917714 https://t.co/0NECKqxgcM
  • AUD/USD Technical Analysis: Aussie Dollar Top in Place Near 0.62? - https://www.dailyfx.com/forex/technical/home/analysis/aud-usd/2020/04/01/AUDUSD-Technical-Analysis-Aussie-Dollar-Top-in-Place-Near-0.62.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #AUDUSD #technicalanalysis https://t.co/vUuk3TJX6D
  • LIVE NOW! Strategist @PaulRobinsonFX discusses important technical developments relevant to short to intermediate-term commodity and equity index traders here - https://www.dailyfx.com/webinars/816147795?CHID=9&QPID=917720&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • AUD/JPY IG Client Sentiment: Our data shows traders are now net-short AUD/JPY for the first time since Mar 23, 2020 11:00 GMT when AUD/JPY traded near 65.09. A contrarian view of crowd sentiment points to AUD/JPY strength. https://www.dailyfx.com/sentiment https://t.co/YtgNvV9BAT
  • France 40 IG Client Sentiment: Our data shows traders are now net-long France 40 for the first time since Mar 24, 2020 09:00 GMT when France 40 traded near 4,193.70. A contrarian view of crowd sentiment points to France 40 weakness. https://www.dailyfx.com/sentiment https://t.co/jcaksfYDZk
  • Thanks for joining me Brett. It was a pleasure to talk to you https://t.co/9NjsbqXsDS
  • Traders undeniably over complicate matters when starting out. However, more complex trading strategies are not necessarily more profitable. Keep your trading strategy simple with these four highly effective indicators: https://t.co/FDOnHdj4sQ https://t.co/H556gktZSi
S&P 500 Tumbles After Trump Threatens China and Japan on Trade

S&P 500 Tumbles After Trump Threatens China and Japan on Trade

2018-09-07 18:00:00
Peter Hanks, Analyst
Share:

Talking Points:

  • The $267b tariff figure would be supplementary to the proposed $200b and $50b already facing China
  • President Trump discussed trade negotiations with Japan, possibly opening a new front in the trade war
  • Consult our economic calendarfor dates of upcoming data releases and market events

Check out our Live Webinars and join our analysts as they cover economic data releases and central bank events live and gauge the effect on markets.

President Trump Threatens China with Additional Tariffs

Markets were rattled as President Trump discussed trade policy from Air-Force One Friday afternoon. In a week dominated by trade fears, the President threatened he could hit China with $267 billion in tariffs. He said they were ‘ready to go’ and could be issued on short notice. The tariffs would be additional to the $50 billion already enacted and the $200 billion currently under discussion.

The public comment period for $200 billion worth of tariffs on China ended this week and markets expected a decision Friday. If enacted, the $200 billion in addition to the metal tariffs and the $50 billion of tariffs already imposed would be a significant portion of China’s total exports to the United States. At this time, no decision has been announced so the threat of another $267 billion is quite inflammatory. Should all proposed tariffs eventually be imposed, the total would surpass China’s total exports to the United States. In the past, President Trump has threatened to enact tariffs on all Chinese exports. The additional $267 billion would effectively do that.

Read up on the history of economic conflicts with A Brief History of Trade Wars.

A New Front in the Trade War

Japan’s stance in the ongoing trade wars has been relatively reserved as Japanese officials have shown little interest in negotiating. Until today, the US administration has made few direct comments on the trade deficit with Japan. President Trump looked to change that, saying “if we don’t make a deal with Japan, Japan knows it’s a big deal.” Possibly alluding to increased pressure, the President will undoubtedly seek to reduce the trade deficit. Already facing metal tariffs, Japan’s willingness to negotiate may change if auto tariffs are proposed.

NAFTA ‘Close’ to a Resolution

One positive on the trade war front is NAFTA. In a breakthrough deal two weeks ago, Mexico and the United States agreed to a bilateral deal separate from the trilateral agreement. After the negotiations, both US and Mexican officials discussed their willingness and desire to negotiate with Canada to reach a trilateral agreement and keep NAFTA in place.

This week, Canada’s Freeland and US Trade Representative Lighthizer have negotiated daily and the mood surrounding the talks is reportedly positive. Although discussions have been close to resolution for what feels like months, they may finally be concluded as daily progress is cited and the issues impeding a deal are resolved. On his flight, President Trump said “Canada is moving along and we’ll see what happens,” referring to NAFTA negotiations.

S&P 500 Price Chart 10-Minute Time Frame, September 7th

S&P 500 Tumbles After Trump Threatens China and Japan on Trade

Dow Price Chart 10-Minute Time Frame, September 7th

S&P 500 Tumbles After Trump Threatens China and Japan on Trade

NASDAQ Price Chart 10-Minute Time Frame, September 7th

S&P 500 Tumbles After Trump Threatens China and Japan on Trade

As we look to markets, a broad sell-off in US equities commenced in response to the comments. The S&P 500, Dow, and NASDAQ all shed what little gains they had and the threats cemented a decidedly red week for US equities. Moving forward, markets should remain timid until an announcement on the $200 billion in tariffs is made.

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

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

DISCLOSURES

News & Analysis at your fingertips.