As the trade war is running fast and hot between the US and China, short USD/JPY?

China vowed to retaliate against US companies after US President Trump threatened to place tariffs on another $200 billion in Chinese imports, deepening the trade dispute between the world’s two biggest economies.

 

  •  Yen and treasuries rallied after Trump threatened to impose more tariffs on Chinese goods which drew a stinging rebuttal from Asian nations, escalating trade tensions between the world’s two largest economies.
  • Every asset class is affected now by the US-China trade war and the lack of volume helps those investors who put their bets on falling markets.
  •  Shanghai Composite Index slid almost 5% after China said it would take “strong” countermeasures if new levies are issued. 
  • The latest threat from Trump comes before the first wave of 25 percent import levies which will take effect on 6 July. The tariffs target the “Made in China 2025 plan” that seeks to develop sophisticated manufacturing capabilities.
  • Investors are worried US may impose further restrictions on Chinese tech and Internet products and cause greater uncertainty for the global economy 
Sneak Peek: US-China Trade Tension Escalates

 

CTA Open LA

 

 

Fullerton Markets Research Team

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