The United State President, Donald Trump tweeted that China had been asked to develop a plan to reduce its trade imbalance with USA by $1 billion but the White House spokeswoman declined to give details on how Trump would like China to accomplish this goal last Wednesday. Investors’ worries increased over the trade war under U.S. President Donald Trump's administration. As the result, Dow Jones fell more than 1% on Wednesday and Asian markets swing on Thursday.
According to the ECB chair’s speech on Wednesday, rising inflation may need more data to confirm. At 17.00 p.m. CPI in February of European Union forecast the same at 1.2% but wages in euro zone of fourth quarter may rise to 1.8%. In my opinion, if wages in EU reach the target, it may become positive for euro. EUR/USD may break 1.2400 points and rise above 1.2450 points. In contrast, U.S. dollar maybe uncertain by the political issue and economic data: building permits in February at 19.30 p.m., job openings in January and consumer sentiment in March at 21.00 p.m. which forecast mix. Therefore, these indices may help greenback to hold steady, if they reach the expectations.
Crypto market dropped hard and the most cryptocurrencies fell around 10% on Wednesday after the words that ‘Bitcoin is not the answer of cashless society but it might be an early sign of change’. I think crypto market may need longer time to recover and accept so the current trend is bearish.
By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.