US Unwilling to remove tariffs

Weekly Report - 11/11/2019

Sticky Points on Tariffs


The latest news from Friday gave us a negative sentiment regarding the progress of the trade war between the US and China after the announcement that the US government is now opposed to the possibility of removing all tariffs. The main concern now is on how important is that announcement and what influence it will have over the phase 1 arrangement. In the initial part of the week, additional updates will have a substantial impact on the USD and will affect the risk desire as well. Last Friday, The United States President Trump stated that there would be no tax lift before the signing of the Phase 1 deal. China will surely want promises before removing any tariffs.

Week that was

OPEC and Russia are examining a mixture of options to maintain stability in the oil market before the crucial December gathering. OPEC and its partners agreed last year to decrease oil production by 1.2 million barrels per day to support prices. The agreement will remain till March 2020, and the producers are anticipated to meet in Vienna to review the terms of the policy on December 5-6. Peter Lee, the senior oil and gas analyst at Fitch Solutions, said “The house view is that the meeting is likely to reaffirm the group’s commitments to the cut that is already in place.”


Main Focus This Week

The week ahead will be moderately busy according to the economic calendar. However, markets will start this week with a slow start. Investors need to remain calm till Wednesday before making a move. The first circle of significant numbers from the US, with October inflation figures, are the first. After the latest FOMC Announcement, the core yearly inflation rate would need to see a significant bid to challenge the FED’s original direction. On Thursday, the Wholesale inflation numbers are coming out accompanied by the weekly jobless claims numbers. We expect a modest impact on the Greenback. Last, at the end of this week, the center will change to October retail sales numbers that will have the biggest impact on the greenback.


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