US President Donald Trump is once again dominating financial news after announcing a “no deal” in the latest US-China trade war talks. While the world’s financial news outlets are portraying the stalled negotiations as a major economic problem, China downplayed the tension and urgency with a comment that indicates it is no longer interested in continuing talks with Trump. Vice Premier Liu He said that China will not compromise its principles, and that the US must lift the excessive tariffs on Chinese exports in order to strike any kind of lasting deal.
Can China’s exporters survive and thrive without US consumer channels, or are they bluffing? Read the latest news and tips for trading USD in 2019 and stay up-to-date. By staying informed on the world’s financial events, your trading performance can drastically improve.
China looks set to put trade war negotiations on hold until the 2020 US election—no doubt in the expectation that Trump will not win another term of presidency. Chinese Vice Premier Liu He ended the talks indicating that he hopes Trump’s successor will have a more favorable and flexible approach to international negotiations. Trump’s comments on China’s lack of concern for resolving the situation included threats of expanding existing US-China tariffs by as much as 25%, and raising import duty by a further 10%.
China quickly responded to Trump’s threats, announcing plans to impose export/import tariffs on over 5000 US products worth over $60 billion. The tariff hike is set to take effect next month. The collapse of the US-China negotiations and the provocative tweets from Trump offer no relief to this troublesome situation that’s been going on for too long already.
The news confirming the prolonged political posturing hit USD market prices hard this week—for practically every USD trading pair. This dangerous escalation in export tariffs will likely affect global growth in the coming months, and could create higher volatility for USD across the foreign currency market.
If you’re fiercely looking for some massive price moves in the pursuit of higher potential profit, then USD might be what you’re looking for—thanks to the US-China tit-for-tat. To ride the predicted volatility more safely remember to set your leverage conservatively to avoid stopouts during extreme price swings and corrections.
If you prefer more stable currency prices, then FX News recommends you look into the 100+ alternatives that don’t include USD—at least for the next few days and weeks. Stay current on the latest political and economic stories with FX News and trade the latest hot-moving currencies.
Check market prices on the Exness trading platform
Not sure how to get started? No problem. Follow this step-by-step guide.