US President Trump Wants a Further $200 Billion of Tariffs on China

The increase in intensity has markets rattled with stocks lower globally, Japan 225 Index down -1.75% overnight, and strong moves in USD Index as it fell below $95.00 yesterday, currently trading at $94.66. There was a noticeable shift in sentiment with USDJPY back down under 110.000 overnight. AUDUSD fell to a one year low at 0.73806 while AUDJPY fell from 82.000 to 81.000 as Australia is at risk of spillover from the impact of US tariffs on China.

In Germany, Angela Merkel is under pressure politically as a two-week deadline was imposed upon her to agree with a deal on migrants. This deadline will fall at the end of June and failure is likely to result in a break in the coalition and her being forced from her position as Chancellor. The German 30 Index fell yesterday -1.3% from 13064.00 and has declined further overnight with the index expected to open around 12710.00. EURGBP is down -0.09% around 0.86670.

US WTI Oil staged a recovery yesterday from support at $63.36 to a high of $65.78 after declining on Friday ahead of OPEC meetings this week. Headlines suggested that the production increases to be discussed at the meeting were much less than was reported, 300K to 600K against 1M to 1.5M barrels per day. The preliminary meeting is taking place today in Vienna and the market may be impacted by headlines from participants. Russia and Saudi Arabia want to increase production while Iran, Iraq, and Venezuela want to maintain current levels.

  • EURUSD is unchanged overnight, trading around 1.16224.
  • USDJPY is down -0.83% in the early session, trading at around 109.619
  • GBPUSD is up 0.07% this morning trading around 1.32554
  • Gold is up 0.37% in early morning trading at around $1,282.70
  • WTI is down -0.90% this morning, trading around $65.12

This article was written by FxPro

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Ed Anderson

Ed Anderson has over 35 years of experience in the financial markets, having worked in London, New York, Toronto, Singapore & Australia. His early career saw him as an Interbank Trader, Futures Trader & Voice Broker before he moved to electronic trading in the early 2000s. With extensive knowledge of leverage platforms and instruments and as the Chief Market Strategist at FxPro, Ed provides in-depth Fundamental and Technical Analysis, as well as frequent market insights on multiple asset classes, to the benefit of FxPro clients.