China to harm the US economy? Geopolitical tensions rise

Important News for the day

• 16th, 08:00 CET UK Consumer price index.

• 16th, 15:45 CET  CA BoC interest rate decision.

• 16th, 19:30 CET US Fed chair Powell speech.

Tariffs out of control?

Financial markets seem to respond on the rising tensions in the tariffs war. After China had stated they would not give it but also raise tariffs on products imported from the US, we can observe now that equities seem to negatively respond. The government in Beijing had pointed out that no new jets by manufacturer Boeing should be accepted further. Falling prices might hence be the result for now. Meanwhile after the recent push higher in oil the technical support zone still seems to be intact. If the USD 60.00 price level won’t break upside momentum might still continue.

Market talk

Today traders will follow the interest rate decision from Canada. Yesterday’s CPI data confirmed that inflation data especially on the monthly basis had come down again to 0.3%, which was way lower than the expectation. The CAD on the other hand lost some steam but still remains strong. A potential entry in the EURCAD and USDCAD might be found depending on the result of the interest rate decision today. 

Tendencies in the markets

• Equities sideways, USD weak, cryptos positive, oil sideways, Silver positive, Gold strong, JPY weak.