FOREX TRADING STRATEGY JUN 19 - TRUMP'S TWEET

Jun 19, 2020
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The belows are the most important events to the financial market that we all have to learn in order to choose the best forex trading strategies.

"A complete decoupling"

President Donald Trump said the United States could pursue "a complete decoupling from China" in response to unspecified conditions - one of Trump's most intense statements about his relationship with Beijing. In a tweet posted on Thursday, Mr. Trump dismissed the previous day's comments by U.S. Trade Representative Robert Lighthizer - arguing that the complete separation between the world's two largest economies is not "a reasonable policy choice".

The tweet was posted the day after Secretary of State Mike Pompeo met with Chinese official Yang Jiechi to discuss whether countries' trade treaties still exist in the strategy. According to Pompeo, Mr. Duong said China would be committed to maintaining the purchase of US agricultural products - a meaningful support for Mr. Trump. On Wednesday, Mr. Trump told the Wall Street Journal: "I think the trade deal is a great deal. But ever since we had a pandemic from China, I felt everything involved. going to China is a bit different. And I'm always tough on China." Meanwhile, Goldman Sachs analysts have warned of the downside risks for US businesses doing business with China, in no small part due to the new geopolitical tensions.

Over the peak

The Chinese epidemiologist said the peak of Beijing's new coronavirus outbreak was over and the new infections had dropped significantly as the nation sought to believe in the regeneration of cases. Coronavirus infection has plunged thanks to partial blockade. Wu Zunyou, an epidemiologist at the China Centers for Disease Control and Prevention, said only 21 new cases were reported on Thursday and the "peak" of the outbreak had passed. June 13. "The fact that the epidemic is being stopped does not mean there will be no reported cases tomorrow. We will still see more cases in the coming days, but it is a process of gradual decline." He did not elaborate on how experts identified the peak of the outbreak. At least 158 ​​people have been infected by the virus during a new outbreak after two months of temporary suspension. Officials are struggling to strike a balance between stopping the spread of coronavirus and keeping the economy running in the city of more than 20 million people.

Chaotic market

Asian stocks were ready to start a turbulent session on Friday after US stocks closed the session with little volatility. Treasury bonds and the dollar rose. Futures market rose in Japan, less volatile in Australia and Hong Kong. US stocks fell at the opening after a report showed weekly claims of unemployment benefits were still above one million, although trading volumes were sparse before options expire on Six. European stocks tumbled. Elsewhere, the pound suffered losses and British government bond yields rose after BoE expanded its quantitative easing program. Crude prices, meanwhile, have risen after recovering previous declines and Iraq said it would make a full cut in oil output this month.

Don’t stop abruptly

Australia should seriously consider reducing its stimulus programs until September instead of ending them abruptly. This is the view of a board member of the Reserve Bank of Australia - Ian Harper - who urged the government to come up with a "gradual arrangement" to ease a sudden, destructive stop shock. economic recovery and rising unemployment.

Harper - one of the six independent directors on the RBA board - emphasized that: "That will have a significant negative impact on consumer confidence, consumer behavior and 60% consumption. of the economy." Unemployment rose to 7.1% in May when the economy lost more than 800,000 jobs in the past two months. RBA board members said ongoing support may need to be diverted through areas such as tourism and education.