Today's Key Market Drivers: Trump announces new Tariffs on China

Today's Key Market Drivers: Trump announces new Tariffs on China

19 June 2018, 06:45
Matthew Todorovski
0
37

Andrew Barnett:

LTG GoldRock

https://www.ltggoldrock.com/todays-key-market-drivers-19th-june-2018/


The Aussie Dollar along with the Canadian Dollar and other traditional risk off currencies took another leg lower this morning after Donald Trump Tweeted that he’s asked the USTR to add another $200 Billion worth of tariffs on China. Financial markets were already in a risk off mindset with trade tensions rising at the end of last week and with little in the way of high impacting economic data on Monday Friday’s trade tension lingered. Today will likely see a continued rise in the Yen and Swiss Franc and no doubt in coming hours the Chinese will announce their retaliation plans which is not likely going to be met with a favourable response from financial markets. I expect more downward pressure on the Aussie, Kiwi and Canadian Dollars. 

 

I entered a short CAD v JPY position on Monday which matched the three principles my trading plan is based on. Fundamentals, technical and a risk management plan that will see me make more money on every winning trade then I risk on any losing trade. The Fundamental side of the coin was the fact Canada will be worse off as trade tensions mount globally and OPEC is also soon likely to announce they will lift Oil production which will see the price of Oil fall and also drag down the Canadian Dollar. The technical side was a head and shoulders formation that has broken the neck line to the downside on the daily chart which provides a risk and reward opportunity of 1:2. I will not bring the stop loss to break even until price has travelled well past 1:1. I love my trading plan as it allows me to not have to be in front of my screen for more than a few minutes per day and in today’s case with me flying to the USA I do not need to look at the market again until I am in California Tuesday evening (Wednesday morning Australian time). Clear, calm and decisive. That’s the way I want everyone trading.

 

On the economic calendar today sees the release of the latest RBA monthly minutes which isn’t likely going to give the Aussie any sort of boost as the RBA will leave rates on hold for the balance of 2018 and into 2019. Mario Draghi will be speaking in Portugal and the market will be eager to hear what the ECB President has to say but I am betting it won’t be anything new or different to what he said last week. The ECB will continue to hold rates at 0% and its current stimulus program will remain until December. I don’t think the EUR v USD has seen its lows for 2018 and expect more downward pressure once we see some more positive US economic data.

 

Bullish n Bearish Indicator

 

Bullish

GBP v AUD

USD v JPY

USD v CAD

 

Bearish 

AUD v USD

CHF v JPY

AUD v NZD

EUR v JPY

EUR v USD

CAD v JPY 

GBP v USD

NZD v USD

GBP v JPY

AUD v JPY

EUR v NZD

EUR v GBP

NZD v JPY

 

Neutral 

GBP v NZD

AUD v CAD

Share it with friends: