FOREX TRADING STRATEGY AUG 17 - TENSION EVERYWHERE
As usual, on Monday, we will look at the current situation in the world and how it impacts the market. Then, we can choose our forex strategies correctly.
The near-daily tensions between the United States and China show little sign of lull, in everything from coronavirus to trade, defense to monetary policy. US President Donald Trump has seen his tough stances on China as the key factor leading to the US presidential election - less than three months away - and it seems he has intentions to continue to pressure.
Tensions have increased since the Covid-19 pandemic spread globally earlier this year. Some in the Trump administration, from Secretary of State Michael Pompeo to White House trade advisor Peter Navarro, see a historic opportunity to rebalance US-China relations over decades. Senior officials of Washington and Beijing last weekend postponed capital trade talks to discuss the status of the "phase one" trade deal signed earlier this year.
New Zealand vote postponed
New Zealand Prime Minister Jacinda Ardern delayed the general election for 4 weeks until October 17 when Covid-19 outbursts worsened and threatened to expose the nation's largest city to blockade for longer. Mrs. Ardern said she postponed the election from September 19 after consulting with other political parties to provide certainty to voters. After 102 days without the coronavirus in the community, a new outbreak in Auckland has seen the city blockade since August 12, leaving people being asked to stay at home and businesses exposed. consumers have to close. The city, home to nearly a third of the nation's 5 million citizens, is an important battleground for Ardern as her Labor Party looks forward to continuing in a second term.
Market on Monday
The dollar started the new trading week on a steady basis after the plan to review the US-China trade deal was delayed, while Asian stocks were of course opening slightly lower. The greenback was flat against most G-10 silver coins at the start of trading on Monday. The Australian dollar fell as the state of Victoria extended restrictions until mid-September before the coronavirus outbreak. S&P 500 Index futures rose. Futures markets in Japan and Australia decreased, while in Hong Kong it was higher. Oil increased. Gold will be watched closely after last week's slippage. The emerging market bull run that has wiped out all the losses since the onset of the coronavirus pandemic, appears to be heading for a reassessment at the end of August.
Protest in Bangkok
Thousands of anti-government protesters marched in the Thai capital Bangkok on Sunday, demanding an end to the military-led government and the restored monarchy's power.
Demonstrators wearing masks and banners gathered at the Democracy Monument, which commemorates the 1932 Revolution that ended the absolute monarchy. They held up three fingers to reflect their call to dissolve parliament, end threats to civil liberties and for a new constitution to be drafted. The protest was organized by Free People, a group comprised of several student organizations as well as gay, lesbian and transgender youth.