Forex Signals Brief for August 31: The Trade Wars Return
Rowan Crosby • 1 min read
The ongoing trade wars had been pushed to the side for the last week or so. Markets had been heavily focused on the strong earnings season in US equity markets and rising interest rates in the US.
However, late yesterday, US President Trump put the issue of trade right back to the top of the agenda. Reports came out suggesting that Trump is ready to implement the 25% tariff on $200 billion worth of Chinese imports as soon as next week. That is when the period for comment on the policy ends.
This spooked equities and saw a move away from risk assets. It also weighed on the commodity sector. Markets will be looking for a response from China, although Asian trade has been quiet to start the day.
Otherwise, we round out a very quiet week of data with Eurozone CPI being the major focus. The EUR/USD has continued to fall away after running into strong resistance.
Forex Signal Update
Markets were tricky yesterday and the FX Leaders Team ended the day one and three with a nice signal in the EUR/USD being the highlight.
Silver – Silver pushed lower yesterday and the negative sentiment around commodities hurt the precious metals.
Bitcoin – Active Signal
Bitcoin is doing its best to hold above the $7,000 level but it appears it has its work cut out for it. For now, $6,800 is holding. Friday trade can often be a time when we see some big moves in Bitcoin.
DAX – Pending Signal
The DAX fell away along with other world equities. We are pushing back towards an area of support though. We’ve previously been long in this area so this is a trade to watch.