Trump and Emmanuel Macron talked about taxes

Daily Analysis - 27/08/2019

A draft agreement between US and France reached

The US and France have struck a settlement agreement regarding France’s digital tax. Digital tax is a duty which urged Donald Trump the U.S president to warn France that he will impose also a tax on French wine imports. The draft deal will be presented to French President Emmanuel Macron and the US President Donald Trump later on Monday at a G7 leaders’ summit in Biarritz. A source informed Reuters. Trump’s advisor is OK with the proposal,” “That would be the mechanism at this stage, that’s the joint proposal.”

Gold in a range

On Tuesday, the famous yellow metal Gold remained mostly calm in a range, returning from an over six-year top-scored in the previous trading session. That happens while US President Donald Trump talked about a potential settlement with China, lowering concerns regarding an increase in the already harmful trade war. Spot gold went up 0.1% to $1,528.09 per ounce. On Monday Gold rose to its most important in more than six years exceeding the $1,550 point in early trade. After that, Gold gave back its profits due to the decrease of the tensions between the US and China.

Oil rises over trade war easing

On Tuesday oil prices increased following the US President Donald Trump prediction regarding a trade deal with China. The prediction came after the positive remarks by China that created a more peaceful environment after a series of tariff threats that once again stressed the markets. The U.S. crude went up by 30 cents at $53.93 a barrel while Brent crude went higher by 25 cents, at $58.94 a barrel after the 1% drop in the previous session, which marked a 3 days drop in a row.

Yen on the positive side

On Tuesday the safe haven Japanese yen advanced while some traders softened their confidence regarding the possibilities for a quick resolution to the US-China trade conflict, which increased so-called risk-off trades.

Markets all around the world have been up and down due to exciting twists in the trade fight this month. On Monday Donald Trump signaled the likelihood of a trade agreement with China, days after both counties published new tariffs to each other.

The greenback developed further pressure versus the yen while a drop in US Treasury yields revealed that some traders yet supported the protection of government debt.

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