US-Sino negotiations – There are no main breakthrough

After two days, US-Sino trade negotiations is finished and it looks like there wont be any main breakthrough. We can expect a new round of US tariffs for about $16 billion of Chinese products.

Fed’s Chairman Powell will speak and we can expect of him to defend the Fed’s current rate hike path. The speech’s title is to be “Monetary Policy in a changing economy”. This even could effectively raise the US dollar’s value with adverse effects. On Powell’s speak we can also expect the low unemployment as well as the accelerating inflation and GDP growth rates in order to argue for the economic situation. Also, we can expect comments about the international trading relationships and their effects on the US economy.

EUR/USD moved sideways with some bearish tendencies, testing the 1.1537 support line. If the pair come under selling interest we could see it breaking the 1.1537 support line and aim for the 1.1482 support barrier. On the other side, we could see it rising and aiming if not breaking the 1.1623 resistance line.