US: Trying to resolve the escalating trade and political tensions with China - Rabobank

Sandeep Kanihama FXStreet Contributor

Analysts at Rabobank note that the Wall Street Journal reported for the umpteenth time that US President Trump and Chinese President Xi Jinping are planning a meeting around the G-20 in November to try to resolve the escalating trade and political tensions between the two.

Key Quotes

“That’s the same story that involves US Treasury Secretary Munchin and White House Economic Advisor Kudlow; the same story that usually boost US stocks; and the same story which keeps turning out not to have any substance to it.”

“The US has thrown China one small bone: reports are now that Mnuchin will on Monday declare that yet again China is NOT a currency manipulator. Obviously China isn’t. Yes, it’s aggressively mercantilist and has draconian capital controls in total defiance of IMF reserve currency norms: but it isn’t artificially lowering its currency - that lowering is going to be entirely natural when it comes, trust me. The response in CNY has been strong: it is currently back at around 6.90.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD slumps below 1.1750 as USD benefits from risk-aversion

EUR/USD comes under renewed bearish pressure in the European session and trades below 1.1750 following a recovery attempt earlier in the day. The US Dollar gathers strength and weighs on the pair as investors seek refuge in the wake of Israel and the United States' joint attack on Iran.

GBP/USD targets 1.3500 barrier near moving averages

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold surges on safe-haven demand, tests $5,400

Gold benefits from intense risk-aversion on Monday and climbs to the $5,400 region, setting a fresh monthly-high in the process. Tensions in the Middle East remain high as Israel and Hezbollah continue to exchange strikes following the US-Israel joint attack on Iran over the weekend.

Bitcoin on brink of breakdown amid US-Iran war

Bitcoin (BTC) remains under pressure near the key support level of $65,700. Trading at $66,400 at the time of writing on Monday, a breakdown below this critical level would suggest a deeper correction ahead.

The week ahead: Conflict in the Middle East jolts markets

Events in the Middle East are obviously dominating financial markets this morning. The Brent crude oil price is extending gains and is higher by more than 8%, stock futures are pointing lower and the gold price is higher by more than 2%.

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.