How is the trade war affecting USD ?

[khongminhtn]

With all the recent news regarding the trade wars. What do you guys think about its affect to the FX market ? :clap:

 

[piphoe]

well there is this:

https://www.rawstory.com/2018/07/tr...ts-held-us-customs-thanks-presidents-tariffs/

bit of irony..

 

[piphoe]

pretty funny should those hats end up in the bay like so much tea

 

[FXX]

its been affecting it every time trump or china respond with risk off sentiment. I have made lot of pips from it

 

[piphoe]

https://www.cnbc.com/2018/07/19/tru...t-tariffs-on-all-505-billion-of-chinese-.html

 

[khongminhtn]

its been affecting it every time trump or china respond with risk off sentiment. I have made lot of pips from it

Any how you could show me how you’ve made some pips from it ? Cuz I tried to connect the dots to decide whether price would go up or down, but failed every time

 

[khongminhtn]

well there is this:

https://www.rawstory.com/2018/07/tr...ts-held-us-customs-thanks-presidents-tariffs/

bit of irony..

I’ll have a look at those

 

[khongminhtn]

Is there a way to determine whether the value of USD will rise or drop based off the tit for tat ?

 

[FXX]

Any how you could show me how you’ve made some pips from it ? Cuz I tried to connect the dots to decide whether price would go up or down, but failed every time

Trade war represents uncertainty which the markets do not like. The trade plan in these scenarios is to buy into safe havens against the weakest currency at the time. If brexit is headlining with negative influences on sterling, then you sell GBPJPY. If there was negative data or similar coming out of the EU then sell EURCHF. you could also have bought into gold or other yen pairs. It's all a case of identifying risk off tone from trade war news and then pairing that with a currency that was weak on the day. They all need to be safe haven assets you are pairing with.

Sent from my SM-G950F using Tapatalk

 

[tomorton]

Is there a way to determine whether the value of USD will rise or drop based off the tit for tat ?

USD has been strong since March. This will probably continue next week. But not for ever.

For a private retail trader, a strategy dependent on long-term current price prediction is probably going to be unsustainable. Please tell me you're not trying to do that......

 

[hatemypips]

With all the recent news regarding the trade wars. What do you guys think about its affect to the FX market ? :clap:

Dollar basically gains when tensions intensify seems this will imply more expensive imports for US, i.e. faster inflation, what in turn implies more aggressive rate hiking by the Fed

 

[tomorton]

Until recently, the U.S.-China trade war was quite significant and I honestly could not identify a clear leader in this confrontation. It seemed to me that each country had its own strengths that could help win. Moreover, many of my acquaintances had invested money in Chinese companies, including Amazon, and that brought them good returns. But after the news about the virus in China and Trump's taunting remarks about it, I think the US will take the lead at the moment but that's not a fact either. Because tomorrow Trump will do something or say, and we will have a new stage of development that will fundamentally change the picture of what is happening.

The important thing is that USD has been strongly bought as a result of the corona virus issue. We may see that this has been contained within a few days or it could become a global pandemic. Either way, China's economic performance is already badly hurt for 2020 whereas that of the US is OK - so far.

An interesting development will be the impact on JPY, which has also been strongly bought recently alongside USD, as Japan is a close neighbour to China and an important trading partner.

CHF and Switzerland less exposed to China so expect CHF to come through with relative stability.