FOREX STRATEGY FOR DEC 13 - THE NEW AGE IS COMING
Over the last 24 hours, there were certainly waves to the world currents. As a forex trader, you must embrace those changes and apply the suitable forex trading strategy.
Here comes a deal
Bloomberg reports citing sources revealing the terms presented by Trump White House advisers to Trump on December 12 (US time). The Wall Street Journal reported the same thing. In particular, the US agreed to postpone the additional 15% tariff to US $160 billion of Chinese goods by December 15. In return, Beijing pledged to buy more American agricultural products and do more to protect US intellectual property, ending forced technology transfer.
Mr. Lighthizer, one of the negotiators with China, "has seen progress on the negotiating table so he wants them to be continued by reducing tensions."Negotiations to end the costly trade war are expected to end in January 2020, just before President Trump reads the federal message, a Bloomberg source said.
"Getting VERY close to a BIG DEAL with China. They want it, and so do we!" Mr. Trump announced on his personal Twitter on December 12 but did not mention the information mentioned in the US newspaper. However, just this short line helped the main indexes on the US stock exchanges to record highs. The United States has imposed tariffs of between 15% and 25% on more than US $360 billion of imports from China, a move that faces limited opposition and retaliation from Beijing.
A rising market
Asian stocks were poised to rise following the optimism that came from the trade deal - pushing US stocks to record levels. The S&P 500 gained after news of US officials reaching an agreement with China. A breakthrough in trade will erase the threat to the majority of equity investors just one day after the Federal Reserve signaled that there is no need to raise interest rates as the economy shows improvement. stability. The renminbi has appreciated, and the yen has depreciated. In Europe, the central bank said it would maintain the repurchase of bonds and keep interest rates low until inflation target is reached. The pound surged following a UK poll poll forecasting the majority support would go to the Conservative Party of Prime Minister Boris Johnson.
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The British election
According to the official poll, Prime Minister Boris Johnson is on his way to a decisive victory in the UK general election. A win will prove his gamble in an early vote and put the country on track to leave the European Union next month. The opposition Labor Party is expected to secure 191 seats. While some Conservatives want Mr. Johnson to cut ties with the EU completely, most members will give him more strength to go his own way, especially if he needs more time. to negotiate with the bloc. Labor Party leader Jeremy Corbyn has bet everything on a radical plan to raise taxes for the rich and nationalize the industry, but now he may face enormous pressure to Abandon the plan if the results confirm what is forecasted.
Even China cannot overcome its inherently affordable housing crisis. When Beijing introduced prices for nearly two-thirds of apartments by the end of 2016 as part of a program to provide housing for millions of middle-class citizens, a series of affordable apartments began to grow. onto the outskirts of the city. Three years later, the shoddy, cramped, remote houses were almost sluggish. This is an awkward fact when faced with authorities in the nation's vast capital, which has introduced significant housing restrictions to reduce prices by nearly 30% in the 12 months to September. In 2016. Few policymakers around the globe are equipped with such detailed decision-making tools, which makes Beijing's problem more difficult.