June 1st, 2018: Currencies Steady Despite Trump Tariffs
June 1, 2018 8:11 am
Morning Report: 07.00 London
Currencies are steady despite stock market turmoil surrounding Trump’s tariffs. Tit for tat punishments are on the cards with a global trade war thought to be closer than any time since the 1930s. The dollar index is in control, rising again this morning.
Dollar pairs are on the back foot, with selling led by the AUD/USD which is selling off for the second day in a row on potential trade tariff impact. The GBP/USD is also slipping despite positive economic data yesterday.
The euro is off against the dollar, but with losses moderated, helping the euro to out-perform against other currencies. The EUR/GBP has continued to rise this morning.
The Canadian dollar is also feeling the pinch of potential trade tariffs, with the USD/CAD rising again following Wednesday’s sell off.
The USD/JPY is on the rise as the dollar trumps other currencies. Other yen pairs are following suit.
Coming up today
We start the day with a range of lower tier European manufacturing PMI data points.
At 09.30, we have manufacturing PMI.
The main event is US non farm employment change, average earnings and unemployment rate at 13.30.
ISM manufacturing PMI is at 15.00
Trade Idea
The AUD/USD recovered well on Wednesday, but has sold off for the last two sessions. The potential impact of a tariff war so far appears to be muted, but long term this could bit Australia’s largest trading partner China.
Morning Report: 07.00 London
Currencies are steady despite stock market turmoil surrounding Trump’s tariffs. Tit for tat punishments are on the cards with a global trade war thought to be closer than any time since the 1930s. The dollar index is in control, rising again this morning.
Dollar pairs are on the back foot, with selling led by the AUD/USD which is selling off for the second day in a row on potential trade tariff impact. The GBP/USD is also slipping despite positive economic data yesterday.
The euro is off against the dollar, but with losses moderated, helping the euro to out-perform against other currencies. The EUR/GBP has continued to rise this morning.
The Canadian dollar is also feeling the pinch of potential trade tariffs, with the USD/CAD rising again following Wednesday’s sell off.
The USD/JPY is on the rise as the dollar trumps other currencies. Other yen pairs are following suit.
Coming up today
We start the day with a range of lower tier European manufacturing PMI data points.
At 09.30, we have manufacturing PMI.
The main event is US non farm employment change, average earnings and unemployment rate at 13.30.
ISM manufacturing PMI is at 15.00
Trade Idea
The AUD/USD recovered well on Wednesday, but has sold off for the last two sessions. The potential impact of a tariff war so far appears to be muted, but long term this could bit Australia’s largest trading partner China.
A good way to play this is a LOWER trade predicting that the AUD/USD closes below 0.7500 in 14 days could return 165%.
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