The EU has published a ‘retaliation list’ of American goods that will be taxed in Europe, if the US steel and aluminum tariffs are imposed. The European and British economic calendar are quite light today, but keep an eye on news from the G20 meeting being held in Argentina.
Traders are following the UK/Russia tension for fears of volatility and worries about global trade are affecting the markets. With no major British or European events today, traders should follow international events for volatility, Don’t miss the Swiss Interest rate decision this morning.
Global markets reacted negatively on concerns of a trade war between the US and China. The Dow, S&P 500 and NASDAQ have all seen losses. The USD is also trading weaker today, also affected by the firing of the US Secretary of State who was seen as a globalist. Traders are now eyeing US data today,
The GBP jumped yesterday to a high of 1.3910 against the USD after it was reported that the UK was close to coming to an agreement with the EU on a transition deal. Today: UK budget report which is expected to reveal the UK’s smallest deficit in close to 16 years.
The Europeans are seeking clarifications from the US administration regarding the import tariffs, but so far, the uncertainty has not undermined the EURUSD. Friday’s positive NFP boosted US stocks on Friday, but slow wage growth figures overshadowed the NFP.
Busy day today for EUR traders. At 13:30 GMT the ECB will make its policy statement and rate decision. About 6 hours later, the US President is expected to sign the order for steel and aluminum tariffs on European imports. The EU is expected to retaliate, imposing import tariffs on a range American products.