Sino American Maneuvering

Daily Analysis - 07/05/2019

Trump Tweets New Tariffs


This Friday the tariffs levied by the US administration against a raft of Chinese goods are set to expand by 150% from 10% to 25%. That is no small change. The world’s stock markets are upset, with some traders opening their wallets and others closing them tighter than crab keisters. The problem for us as analysts is that the reason for the escalation given by the US administration is credible: The Chinese are renegotiating something they already negotiated. This is standard Chinese negotiating tactic. But, so much of what the US administration says is so far from truth and reality that the discount factor that must be applied to its utterances render them meaningless.

Singapore goes Against the Grain

Singapore is breaking from the pack of indifferent stock index traders and buying. Why some markets behave contrary to others or even a majority of markets around the world is less important than identifying a trend that is tradable. Such is the case with the Singapore index today.


AUDUSD is falling as we go to press

The uncertainty and nervousness extant in the stock markets are also making their presence felt in the currency markets. Similarly, with some pairs going one way and others another with no apparent pattern or trend discernable. Regardless, a particular asset that trends well enough is all that a good trader seeks.


US dollar index falls

It is not only the Chinese people of the People’s Republic of Republic of China who suffer under this tariff, beggar thy neighbor worthless policy, it is also the American people and their currency, which happens to be the reserve currency used by the immediate world. The US Dollar index is falling in the fallout of the struggle for power between rivals.


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