- March 23, 2018
- Posted by: Joey Benedid
- Category: Market News
Yesterday’s announcement that the White House is taking aim at China’s unfair seizure of US intellectual property saw the U.S. level tariffs of $50-60 billion on Chinese imports sending equity markets plummeting on fears of a global trade war. The U.S. dollar is mixed as China has so far shown a modest response leveling only $3 billion in tariffs but many are looking for a firmer response in coming days. Headlines will be eyed for further developments as an edgy market awaits U.S. durable goods orders data out at 8:30 AM EST.
USD/CAD had a strong recovery from the lows seen in European trading yesterday at 1.2830 and closed above 1.2900 on fears that a global trade war would weigh heavily on our economy. While markets will await further news on how these tit-for-tat tariffs will play out our immediate attention will focus on Canadian retail sales & CPI numbers also being released at 8:30 AM EST. Soft prints here are likely to push us towards 1.3020-50 while healthier data will see us drift towards 1.2850 with a preference still to buy USD on dips.