US raises tariffs on $200B worth of Chinese goods
Friday 10 May, 2019
Daily Currency UpdateUSD - United States DollarThursday's negotiations between the US and China trade representatives ended without a breakthrough between the economic superpowers, and the tariffs President Donald Trump threatened to impose did go ahead at 12:01 today, mid-way through talks. With Friday's negotiations beginning, over $200 billion of Chinese goods will be taxed at a 25 percent rate, up from 10 percent. Beijing said it would strike back against the US, increasing tensions as trade talks continue. The market remains relatively stagnant despite the imposed tariffs as the market waits to see if the world's two largest economies can reach a compromise or whether there will be a breakdown in negotiations. The US Dollar has been remarkably resilient as of late, due to a string of positive technical data over the past few months.Market analysts expected the US consumer price index figures to rise to 2.1 percent on both the headline and core inflation numbers. The headline CPI for April printed 2.0, while core CPI saw the median of 2.1 percent excluding food and energy.
Key MoversMarket participant focus now turns to US CPIs, French, Italian & U.K. industrial outputs, Italian & UK retail sales, UK GDP & trade balance and Canadian labour market data. There is potential for extreme volatility across major currency pairings as Friday continues.
- EUR/USD: 1.1217 - 1.1247 ▲
- GBP/USD: 1.2991 - 1.3029 ▲
- USD/CAD: 1.3378 - 1.3481 ▼
- AUD/USD: 0.6978 - 0.7018 ▲
- NZD/USD: 0.6582 - 0.6614 ▲