29.05.2019: US-China’s conflict impacts on markets (USD, CAD, BRENT)

Silence regarding the US-China standoff raises traders’ concerns. Tensions on the market are increasing with every day as the date of imposition of China’s tariffs on US imports approaches. Against this background, the US dollar index is climbing towards its recent highs. The greenback’s rally moved it above 98.00. 10-year US government bonds sank to the minimum level of 2017 amid increasing demand for safe assets. Meanwhile, a rumor appeared in the market that the Fed could lower its interest rate this year, possibly even twice. The trade conflict has already affected the American economy as well as the global one. Further consequences may force the regulator to change its monetary policy. Currently, investors are looking forward toseeing the GDP data for the first quarter from the United States. The greenback also firmed against the loonie. The pair is consolidating slightly above 1.3500 today. Besides, it has many reasons to continue growing. The Bank of Canada decided to keep its interest rate unchanged during today’s meeting. The bank’s representatives did not mention the necessity of returning to neutral rates. However, investors do not need any hints to understand that the regulator will have to stimulate the country’s economy in the nearest future. Moreover, Canada’s currency lost the support of oil quotes. The Brent benchmark fell below $67 per barrel for the first time in the last two months. At the moment, the market sentiment is ruled by concerns regarding the consequences of the US-China conflict. This is all we have for you today. We wish your trading to be profitable and hope to see you tomorrow on our channel. Keep well!

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