Tag: US

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EU and US officials meet to discuss tariffs

Media suggested that US secretary of commerce Wilbur Ross and EU trade commissioner Malmstrom will meet next week to discuss tariffs. In a telephone conversation yesterday, the EU official reiterated EU hopes to be exempted from the US steel and aluminum tariffs. US official Peter Navarro, stated yesterday that tariffs could be applied without triggering a trade war, while on other news Germany’s Chancellor Merkel expressed hopes for the talks on US tariffs. Should there be further positive headlines about the issue, USD could strengthen.

EUR/USD moved in a sideways manner yesterday with some bearish tendencies breaking the 1.2355 support line. We see the case for the pair to continue to trade in that manner today as the market seems to have started positioning itself ahead of next week’s FOMC meeting and the US industrial production data for February, due to be released today could support the USD. Should the bears have the upper hand we could see the pair breaking the 1.2230 support line. On the other hand should the bulls take the reins we could see the pair breaking the 1.2355 resistance line and hover above it.

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US: Another shutdown?

There seems to be another US Government shutdown, at least for a few hours as Senate has failed to reach a compromise to approve a temporary funding bill. Republican Senator Rand Paul has delayed a Senate vote on a bipartisan budget agreement for deficit reasons. White House has already instructed government agencies to prepare for a shutdown. The shutdown may prove to be temporary though as the Senate will come to a vote before the start of the US working day. US Dollar, could weaken somewhat from the developments, especially should the shutdown be realized and prolonged.

EUR/USD traded in a sideways manner yesterday, slightly above the 1.2230 support zone. We see the case for the pair to continue to trade in sideways manner with a bearish tone. The argument is based on the downward trend line which begins on Friday last week as well as the weak RSI. It should also be Cable dropped yesterday and tested the 1.3875 support level. Should the bears be in the driver’s seat we could see the pair head south, breaking the 1.2230 support line and aim for the 1.2100 support barrier. On the other hand should the bulls take the reins, we could see the pair breaking the 1.2355 resistance level and aim for the 1.2455 resistance hurdle.

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