State of the market: concerns about trade confrontation return on the market

Stock indices of the Asia-Pacific region are traded mostly below zero at the trading on Tuesday, which was caused by data on the application of new duties on Chinese goods in the US. Yesterday it became known that the Trump administration imposed 10% duty on $ 200 billion, threatening China that if retaliatory measures were taken, the third stage of duties of $ 267 billion would be applied. China promised to respond with similar actions by the end of the year.

As a result, the risks of trade confrontation returned to the market, but there is as yet no mass flight of investors to safe assets. This behavior is caused by the lack of explicit actions and the fact that the market expected such a development of events.

The US dollar index at the start of the day is trading near support of 94.50, keeping downward dynamics. At the same time, the growth of risks around the trade confrontation may slow down the decline of the American dollar, but the downward trend in the dollar remains in force. Support levels: 94.50 and 94.30, resistance: 94.80 and 95.00.

Read also: “Swedish Krona. Features of trading Scandinavian currencies »

Hanzenko Anton

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

Topical articles of the trader’s blog:

1. The EU and the UK are making compromises on Brexit
2. Singapore dollar. Features of trade.
3. How long will last the US trade war against all?!

Current Investment ideas:

1. Preparing to have profits on an optimistic report of Alcoa Inc.!
2. On weak reporting of Boeing shares we can get a strong income!