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By Associated FX Analysis Team

Kantox currency update: Trump starts a trade war with China

Published July 6, 2018

currencies 8

The dollar has ticked over the last sessions, to approach its lowest levels in three weeks, with the investors cautious after U.S. President Trump confirmed that tariffs Chinese goods’ imports kick today, an action that is likely to have a response from China.

Datawise, today the market will be attentive to the US non-farm payrolls report, which is expected to show that US labour market remains strong, although the ADP report triggered some concerns on Thursday, showing a lower than expected volume of payrolls in June.

EUR/USD pushing against 1.1720 resistance area. The euro appreciated on Thursday, buoyed by stronger than expected industrial orders in Germany, to reach the limit of the last three weeks’ trading range, at 1.1720.  As at London market opening times, the EUR/USD is trading at 1.1715.

GBP/USD: consolidates above 1.3200The pound rose on Thursday, supported by BoE Governor Mark Carney’s upbeat comments about UK economy, to reach fresh three-week highs at 1.3275 before pulling back to the lower range of 1.3200. As at London market opening times, the GBP/USD is trading at 1.3230.

USD/JPY hovering around 110.00. The dollar found support at 110.20 on its retreat from week highs above 111.00 and the pair has remained trading sideways around 110.00 over the last sessions. As at London market opening times, the USD/JPY is trading at 110.55.

In the Calendar Today

The main event today is the all, eyes will be on the US Non-Farm Payrolls and the average hourly earnings. The strength of the labour market, and especially the salary inflation trends are one of the main elements to define the Fed’s monetary policy and tend to have an important influence on near-term euro volatility.

12:30 GMT        US: Non-Farm Payrolls report (Jun)
Previous: 223K        Expected: 195K

12:30 GMT        US: Average Hourly Earnings (YoY) (Jun)
Previous: 2.8%        Expected: 2.7%



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