Yesterday as expected the Trump administration announced that a 10% tariff of $200bn worth of Chinese goods will be levied effective September 24th and on the back of this the U.S Dollar which measures the greenback against a trade-weighted basket of six major currencies, rose by to 94.73 from a low of 94.32. The level of the tariff will be raised to 25% beginning next year. The statement added that should China retaliate; the US will consider placing tariffs on an additional $267bn of Chinese imports. China has said it will impose new tariffs on U.S. goods worth $60 billion on Sept. 24, but levies would be instituted at lower rates than had been expected, according to a Reuters report.
Meanwhile on the data front, we saw US NAHB Index steady for the month of September suggesting that homebuilder sentiment might be firming after having dropped in 2018 from its expansionary high in late 2017. The top-line index has remained stable at 67 in the month, a level in line with further rises in homebuilding activity.
Looking ahead the U.S. is to release reports on building permits and housing starts.