Collinson FX: May 22 - US likes Sino-US trade agreement
by Collinson FX 22 May 2018 13:58 BST
23 May 2018
Oceanbridge NZL Sailing Regatta, Day 3, February 5, 2018, Murrays Bay SC © Richard Gladwell
Collinson FX: May 22 - China news triggers surge
US equity markets greeted the news surrounding a Sino-US trade agreement, with glee, as share prices surged! Both parties have agreed to suspend threatened tariffs over the massive trade imbalance. China has agreed to enormous increases in Agriculture and Energy products and aim to cut the deficit by $370 Billion. The Dollar continued to prosper, with the GBP falling to 1.3410, while the Yen broke back above 111.00.
The US Government immediately pivoted, to address the Iran Nuclear Deal, warning Iran and reimposing tariffs. This is right out of the 'North Korea' play-book. The massive tariffs will crush an already challenged Iranian economy and force them back to the negotiating table. European allies had signalled an intention to continue the old 'Iran Nuclear Deal' but the prospect of US sanctions will ensure solidarity. Oil prices jumped.
Commodity currencies managed to stabilise, as associated prices rallied, boosted by the Geo-Political developments. The AUD jumped above 0.7550, while the NZD consolidated above 0.6900, halting the recent losses. Both currencies are beneficiaries of improved trade conditions and fiscal progress, but remain technically vulnerable.
Disclaimer: The details expressed in this website and accompanying documents or transmissions are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Collinson Forex Ltd accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site
For more on Collinson FX the latest update click here now
Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 |