Dec 16, 2019

It’s Monday. The first thing to do is to quickly recap what has happened over the weekends and adjust the forex trading strategies according to the world events.

You should know:

Phase 2 incoming

U.S. Trade Representative Robert Lighthizer said that so far, there has not been a timeline for the United States and China to launch "phase two" trade talks, which are in conflict with the General's proposal. President Donald Trump that the negotiations will begin immediately. Currently, the two sides are focusing on the implementation of the agreement reached last Friday, which is expected to be signed in January, he said. In this agreement, the United States will reduce taxes on imports from China, while Beijing promises to significantly buy more US agricultural products, as well as comply with new commitments on intellectual property, technology transfer and currency.

Forex strategy Dec 16

A chaotic market

Asian stocks are likely to start a slightly chaotic week as analysts do not have details on a partial trade deal between the United States and China. The Australian dollar and the yuan were more stable earlier today; The 10-year Treasury yield jumped initially on Friday, but fell back when the deal was not what analysts expected. The United States delayed tariffs on Chinese goods that should have happened on Sunday, and China said it would suspend additional tariffs on some US imports.

Some highlights this week are:

  • November retail and industrial production data for China will be released today.
  • The BOJ interest rate decision will be announced on Thursday.
  • On Friday, US GDP is expected to show expanding growth.

Huawei’s threat

China's ambassador to Germany has threatened to retaliate against Berlin if it excludes Huawei Technologies, a supplier of 5G wireless devices, because millions of cars are sold by Chinese carmakers in China. Ambassador Wu Ken's speech on Saturday at an event organized by the Handelsblatt newspaper was to counter the growing opposition to Huawei by some lawmakers in the ruling coalition of German Chancellor Angela Merkel. They challenged her Chinese policy with a bill that would impose a broad ban on "untrusted" 5G suppliers.

Singapore takes flight

Forex strategy Dec 16

Singapore's hedge funds are surpassing global rivals in larger cities like London and New York. Their success comes at a time when many investors are skeptical whether it is wise to pour large sums of money into hedge funds while fees are high and profits are meager. Hedge funds in Singapore are shining as a group that generates an average return of 9.4% for customers in 2019, according to Eurekahedge.