State of the market: USA and China are introducing duties

On Sunday, the United States and China set new tariffs on goods, while continuing trade negotiations to mitigate the risks of trade stress. The American consumers, who may face higher prices before the holiday season, will suffer from the the new tariffs.

Market sentiment indicates a continued optimism, which is caused by the growth of China’s stock indices, which, in turn, received a support from positive data on the growth of business activity in the manufacturing sector of China. Data on business activity in China is growing for the third consecutive month since July, indicating the acceleration of activity and the economy of China.

From the start of the day, the US dollar index remains at the opening of the day level. After Friday’s growth, the American dollar should expect a corrective movement against Friday. But the restraint is traced in the context of low activity at the beginning of the week and trade uncertainty between the US and China. The potential for a decline in the American dollar remains, as indicated by a decrease in the US government bonds yield. Significant resistance levels: 99.00-20, support: 98.70-50.

Read also: “The national currency exchange
as an advantage in trade talks”

Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

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