China does not give up so she included additional tariffs of 25% on U.S goods (with worth of $16 billion). On 23rd August 2018, we can see actions from both sides. USA will collect additional 25% tariffs and China will add new tariffs.
We also notice that trade war between China and USA affected on gold and the use of other metals. Gold gained four dollars on a upward movement (on US session) and it was trading under the 1,210 psychological threshold (on European session). Upswing of gold could also continue today because traders may use it as a hedge instrument. If we see bullish movement it will cause to see it move higher aiming for the 1216.37 resistance level and remain close that price. Favoring of gold short positions, can bring the metal moving lower breaking the 1210.27 support level and make aim for the 1207.33 support barrier. Gold could remain between the 1216.37 resistance line and the 1210.27 support level.
Amid fears over a possible trade war, China seems to be reaching out for Europe as it pledges to open further it’s economy. Chinese officials recently stated that “China and EU, now have a common stance against unilateralism and upholding the World Trade Organization”. In other headlines, it seems to be the case that Germany is approaching France in an effort to overhaul EU relationships. Also, EU commission president Juncker stated that the bashing of Russia must stop, implying that a process for the normalization of the EU-Russian relationships could begin. Should there be any further positive headlines about the EU we could see the common currency strengthening.
EUR/USD traded in a sideways manner on Friday and during today’s Asian morning between the 1.1715 resistance level and the 1.1640 support line. The pair could continue to trade in sideways manner, however we might see some bullish tendencies as the financial releases today might favor the EUR and weaken the greenback. Should the pair come under buying interest we could see it breaking the 1.1715 resistance line and aiming for the 1.1820 resistance level. Should the pair come under selling interest we could see it breaking the 1.1640 support line and aim for the 1.1550 support hurdle.
According to media, China warned that it would be ready to fight back, after US officials said that the US still could impose tariffs on imports of around 50 billion USD. Specifically, the Chinese commerce ministry stated that the US measures are against WTO rules and that China reserves the right to take countermeasures. Chinese officials called the US “to keep its promise and meet China halfway in the spirit of the joint statement” they made earlier. The issue could spill over, affecting aspects of the US-Sino relationship like the US-North Korea meeting and free navigating in the South China Sea. Please be advised that currently, the issue also includes restrictions to Chinese investments in the US. Any further escalation of the situation could strengthen safe havens.
USD/JPY traded in a sideways movement yesterday testing the 108.95 resistance level and the 108.50 support level. The pair could continue to trade in the same manner today, although it might prove sensitive to fundamental news, hence we might see some bearish tendencies. Should the bulls take the reins, we could see the pair breaking the 108.95 resistance line and aim for the 109.75 resistance level. Should the bears get in the driver’s seat, we could see the pair breaking the 108.50 support line and aim for the 107.80 support barrier.