As the second half of 2018 gets under way, trade frictions appear to be escalating and geostrategic tensions have intensified with Washington threatening to curb Chinese investment in US technology firms, points out the research team at ANZ.
Key Quotes
“Given China’s Belt and Road and Made in China 2025 initiatives, a protracted Sino-US trade dispute cannot be ruled out. Gradually, evidence is building that US trade policy is weighing on economic sentiment and activity. Initially, this was most apparent outside of the US. However, anxiety amongst American businesses is growing. Fifty-one US trade groups and the US Chamber of Commerce have petitioned Capitol Hill asking that Congress pass any future tariffs Trump imposes under National Security concerns.”
“The announcement by Harley-Davidson that it will move part of its production to Europe in response to retaliatory EU tariffs was telling. Agreeing a framework to discuss US trade concerns is a necessary condition in stabilising business and investor confidence and ensuring the current trade “spat” does not translate into a more meaningful dispute. Extended trade tensions have negative implications for investment and employment whilst financial markets have experienced heightened volatility in recent days as result.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
Recommended content
Editors’ Picks
AUD/USD going nowhere in a hurry; remains stuck in a multi-week-old range
AUD/USD extends the range play on Friday and remains below the 200-day SMA pivotal resistance as the RBA's dovish outlook and renewed US-China trade tensions undermine the Aussie amid a modest USD recovery. However, Fed rate cut bets cap the upside for the USD, which, along with a positive risk tone, acts as a tailwind for the currency pair.
USD/JPY ticks lower as Japan’s strong inflation print lifts BoJ rate hike bets
USD/JPY attracts fresh sellers during the Asian session on Friday following the release of hot consumer inflation figures from Japan, which keeps the door open for more interest rate hikes by the BoJ. Moreover, trade uncertainties and geopolitical risks underpin the JPY and weigh on the currency pair amid the lack of follow-through USD buying.
Gold trades with mild positive bias below two-week top set on Thursday
Gold price edges higher following the previous day's pullback from a two-week high amid a combination of supporting factors. Concerns about the US economic growth and fiscal health, along with renewed US-China trade tensions and geopolitical risks, benefit the XAU/USD's safe-haven status. Moreover, subdued USD price action and Fed rate cut bets support the non-yielding yellow metal.
Why Bitcoin is not equal to Gold
On March 6, 2025, U.S. President Donald Trump signed an executive order establishing a strategic Bitcoin reserve and digital asset stockpile for the United States government.
FOMO vs fundamentals: Retail buys the dip, institutional investors stay cautious
Retail optimism is rising, but institutions are still treading carefully amid lingering macro and earnings risks. Policy and fiscal uncertainty remain elevated, with trade tensions, U.S. debt concerns, and a cautious Fed dominating the backdrop.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.