LONDON, U.K. – Aside from the increasing concerns over trade talk developments, the global market is yet again getting more troubled by the intention of the US President Donald Trump to impose tariffs on French products.
Following the digital tax that France has imposed, the President is planning to slap tariffs on imports from France, which can be valued by around $2.4 billion. Global markets are also concerned that other European imports may also be targeted by Washington, especially after the president has taken to Twitter to announce that he is going to restore the tariffs on products imported from Brazil and Argentina. All of these tariff talks have come in the midst of the market still waiting on new Washington-imposed tariffs in Chinese goods set for December 15.
On the US-Sino relations, the Chinese government has responded to the sanctions enforced by the US on the human rights abuses in Hong Kong. Beijing is currently thinking of preparing a list of untrustworthy entities to whom the sanctions will be imposed. Also, according to Kellyanne Conway, White House adviser, the agreement between the US and China is being written. However, Wilbur Ross, Commerce Secretary in the US, has threatened to impose new bills on China if the initial phase of the trade agreement is not reached.
On the other hand, the US dollar is solidifying its losses, which was mainly caused by the faint PMI figures of the ISM for the manufacturing sector. The current 48.1 score for the PMI suggests an ongoing shrinkage, triggering concerns about the overall global economy.
However, the AUD/USD pair has extended its optimistic trade following the Reserve Bank of Australia who seems a bit hesitant on cutting the interest rates further and painting a more positive picture of the economy.
The EUR/USD pair also held to its gains from Monday. According to the new President of the European Central Bank, Christine Lagarde, the review of the monetary policy of the bank will cover climate considerations as well as viewing the inflation as symmetrical.
The GBP/USD, however, was relatively unmoving amid the election campaigns raging on. The party of Prime Minister Boris Johnson is still on the way to gaining victory, but their gap with the Conservatives has narrowed. The market is also waiting on the events as President Trump attends the NATO summit in the UK.
For cryptocurrencies, the market has stabilized significantly, and Bitcoin was last seen trading around the $7,300 points.
Overall, more news on the US-China trade negotiations has the power to make or break the market this week.