Market Sentiment Suffers as US-China Trade War Concerns Escalate

Market sentiment news and analysis:

Trader confidence has been hit by the escalating trade war between the US and China.

That has lifted haven assets like the Japanese Yen at the expense of “risk on” assets such as stocks and the Australian Dollar.

– In this webinar, I look at this and other factors affecting trader sentiment.

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

Market confidence ebbs away

The escalating US-China trade war is hitting trader sentiment as US President Donald Trump threatens to impose tariffs on $200 billion of Chinese goods and China says it will retaliate.

Confidence is also suffering from the political problems faced by both Chancellor Angela Merkel in Germany and Prime Minister Theresa May in the UK ahead of an upcoming EU Summit at the end of this month. In addition, interest rate increases in both the Eurozone and the UK are looking increasingly unlikely near term.

As a result, downward pressure looks set to remain on “risk on” assets such as the Australian Dollar and stocks, while safe havens such as the Japanese Yen and the Swiss Franc are benefiting.

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

EURUSD May Weaken Further as Trade War Fears Re-Emerge

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

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