US tariffs to be repaid

Frank Walbaum FX Strategies.Asia

Important news for the day

Thur, 05th, 14:30 CET US Unemployment claims.

Market disruptions

According to a recent court ruling the US government needs to potentially refund the tariffs, which had been deemed illegal. A trade court in Manhattan stated that the customs and border protection agency (CBP) needs to refund the fees in volume of USD 130 billion. The indictment has been done by a company from Tennessee. More than 300.000 usually smaller import companies are affected and also the freight forwarder FedEx went to court to receive a refund of the previously paid taxes. The situation remains unclear and might cause markets to be negatively affected as the currently implemented tariffs might remain in place for another four months.

Market talk

After markets usually started to trade weaker each day this week rebounds mostly occurred during US trading hours. One might wonder if the US plunge protection team is acting here to support equities from falling to prevent the situation falling out of control. The German DAX index, on the other hand, has been weakening and only rebounded yesterday to some extent. Based on the weekly chart that index is supported by the 50- moving average. Similarly gold and silver prices have also come under pressure. In comparison of the 50- MA, silver might continue to weaken rather as compared to gold. The safe haven demand is still of strong support, here. While the price of oil keeps rising also the CAD is gearing up steam.

Tendencies in the markets

Equities sideways, USD stronger, crypto positive, oil strong, Silver sideways, Gold positive.

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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