The statements of the US President about the PRC, as well as the official announcement by Washington of imposing duties on certain Chinese goods, expectedly led to the escape of investors into safe assets. Thus, we observe the growth of defensive assets, primarily gold and yen.
Donald Trump said about China as follows: “More measures are needed to encourage China to change the unfair policy, open the market for goods from the US and adopt more balanced trade relations.”
Experts point out that if China responds symmetrically, as official Beijing promised earlier, the volume of trade between countries may decrease, which can slow the growth of the world economy.
At the same time, the US dollar / Euro currency pair shows stability and at the time of writing this article it is being traded in the area of $ 1.1625 against $ 1.1623 at the closure of the previous session.
Currently, the Euro is being traded at around 127.50 yen compared to 128.49 yen on Monday. The US dollar rate is 109.68 yen against 110.55 yen a day earlier.
The indicator WSJ Dollar (which tracks the dynamics of the US dollar against the major world currencies) has dropped by 0.11%.
Meanwhile, the exchange rate of the Australian dollar against the US dollar has fallen by 0.5% for the first time in the past year dropping to less than $ 0.74. It happened because Australia strongly depended on China, which was the main importer of Australian raw materials.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade