A tariff detent?

The WSJ reports that a potential US-China trade deal could include China offering more agriculture purchases, a joint pact to deter Beijing from devaluing its currency.

On the US side, suspending planned tariffs and relaxing export bans against China's Huawei.

While this should ultimately becalm markets, it could also be initially interpreted as a tad disappointing as a tariff detent falls well short of bridging the critical trust gap which is an implicit removal of a significant chunk of existing tariffs.

Still, one of the critical issues is that uncertainty regarding trade tariffs frightens CEO's and curbs business reinvestment and expansion. A detent should at a minimum remove a significant level of escalation uncertainly and if the de-escalation is framed as the first phase of an extensive road map to eliminating existing tariffs, ultimately this could be viewed in a favourable light.

The market, however, remains in wait and see mode


Japan and Typhoon Hagibis 

Jeff Masters, a meteorologist with the magazine Scientific American, told the New York Times that if Super Typhoon Hagibis proceeds as predicted, it could be one of the most damaging typhoons in Japanese history suggest that more than a rugby match or two could be at stake. The Super Typhoon could leave a significant swath of carnage and flooding to the vital Japanese manufacturing industries. 

Losses in derivatives trading can exceed deposits. Refer to www.axitrader.com for legal documentation & licences

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD clings to 3.5-week’s high, trades above 1.1000 figure

The pair is challenging the 1.1047 resistance. EUR/USD bull recovery from 34-month lows remains intact. Further coronavirus headlines are awaited.


GBP/USD hits new 2020 low and bounces amid Brexit rhetoric, coronavirus headlines

GBP/USD is trading above 1.2800 after hitting a new 2020, nearing the 1.2700 figure, as concerns about a no-trade-deal Brexit are weighing on the pound. Modest recovery seen in USD during the American session keeps the bearish pressure intact.


XAU/USD tumbles near two-week’s lows, sub-$1600/oz

Gold has been dropping sharply this Friday while reaching the 200 SMA on the four-hour chart. XAU/USD bulls gave up as sellers took the market down sharply. The bears seem to be in charge and more down could potentially be expected. 

Gold News

WTI remains under pressure around $45.00

Nothing new around crude oil prices, with rising concerns on the Chinese COVID-19 and its potential impact on the economy and the demand for the commodity keeping traders’ sentiment well depressed.

Oil News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors