Trade wars in focus again:
– Donald Trump said Tuesday that he was not pleased with the recent trade talks between the US and China.
– That has revived trade war fears, potentially keeping the US Dollar on an upward path against the Euro.
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And for a longer-term outlook take a look at our Q2 forecast for USD.
Trump stokes trade war fears
US President Donald Trump has brought trade war fears back into focus, saying that he was not pleased with the recent talks between the US and China, although he added that they “were a start”. That has tempered previous hopes that trade has faded into the background as a market factor and turned risk appetite sour.
In turn, that has boosted USD and the decline in EURUSD now seems set to continue, particularly as the Euro remains under pressure from the political situation in Italy. Separate comments by Trump that there was a “substantial chance” the US summit with North Korea will not take place as planned on June 12 has reinforced the risk-off sentiment in the markets too.
EURUSD Price Chart, Five-Minute Timeframe (May 23, 2018)
You can read more of our trade wars coverage here:
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
Trade War: No Respite for EURUSD as US-China Trade Talks Resume
USD Rebound Likely After Two Days of Falls, US-China Trade War in Focus
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
