Trade talks with Canada to stop?

Frank Walbaum FX Strategies.Asia

Important News for the day

Fri, 24th, 09:30 CET DE German purchasing manager index.
Fri, 24th, 14:30 CET UK Manufacturing purchasing manager index.
Fri, 24th, 15:45 CET US Manufacturing purchasing manager index.

US trade

In a new statement US President Trump pointed out that he wants to stop trade negotiations with Canada. The move came after some ads have been aired in Canada, which show US President Reagan in 1987 stating that tariffs will be bad for the US economy in the long- run.Earlier this month Canadian President Carney went to Washington in order to secure a better bilateral trade relationship between the two countries.Currently The US will have to pay 35% of certain goods imported to the United States. The Canadian Dollar did not respond much to the news but showing some renewed signs of weakness.

Market talk

After a merely sideways week of trading in the equity markets, upside potential might now emerge. The S&P 500 keeps pushing higher, which also helps the DAX moving higher. The US- Dollar remains rather strong and according to the DXY index could push even higher. Furthermore also precious metals continue to push lower. Gold keeps correcting and also the Silver market might be on track to move towards the USD 45.00 level. Oil, on the other hand, seems to remain stronger since recent Trump statements in regards to the Ukraine. A potential break higher in the stock markets might also help pushing oil higher towards the technical USD 66.00 resistance.

Tendencies in the markets

Equities positive, USD stronger, BTC positive, ETH sideways, oil positive, Silver weaker, Gold correcting.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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