Trade war – focus Chinese trade balance

Dow Jones dropped more than 200 points on Wednesday because of the rising trade tension between the United State and China. However, major stock markets in Asia including Thailand gained early on Thursday as markets attempt to shrug off trade war. I think investors may look for the positive exit of trade tension as senators seek to force congressional approvals for tariffs by an 88-11 margin on Wednesday. As the result, Trump’s trade game may end with the negotiaions with China soon. Asian shares may focus on Chinese trade balance in June which I thin can be better than the forecast because 34,000 million dollar tariffs started in July
U.S. dollar rose early suppored by higher PPI because Fed may hike interest rate twice in Q3 and Q4 this year. USD/CAD swings hardly on Wednesday night when BoC hike the interest rate to 1.50% and then it continues moving in flat from the steady dollar. Today, if USD/CAD cannot rise above 1.3200, it may continue moving in the frame 1.3100-1.3200 points. But if U.S. dollar can hold above 1.3200 CAD, it may head up to 1.3300 CAD.
Brent price fell hardly to 73 dollar per barrel on Wednesday after Saudi Arabia and Libya signaled to increase supply while U.S. crude oil inventories decreased lowest in 3 years. In my opinion, oil price may take a breath around 73-75 dollar per barrel. Bitcoin fell to 6,200 dollar on Thursday. If Bitcoin fall lower than support line at 6,200 dollar, it may fall to 5,800 dollar.
Economic indices in focus:
• China: Trade balance (Jun) at 10.00 a.m.
• Europe: EU Finance Ministers Meeting
• USA: Michigan Consumer Sentiment (Jul) at 21.00 p.m.

By Niramon Nitnitiphruet (Financial analyst, Olymp Trade).

Olymp Trade Review