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China Cuts Tariffs, Trump Acquitted

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Chinese authorities cut tariffs on more than $75 billion worth of goods made in the United States. The announcement comes as part of the trade talks.

China is also expected to ramp up its imports of US goods up to $200 billion in value.

Meanwhile, President Trump’s impeachment trial died quickly after a majority senate voted to acquit him.

German Manufacturing Falls in December

German manufacturing orders fell sharply in December as data from the Federal Statistics agency showed. Manufacturing orders were down 2.1% in December.

This follows a revised 0.8% increase in November. Economists forecast an increase of 0.7% for December. Domestic orders rose 1.4% while foreign orders fell 4.5%.

EURUSD Breaks Past the Psychological Support

The common currency maintains its bearish trend as price broke past the 1.1000 level of psychological support. The strong declines below this level indicate a move to the next support at 1.0952.

We could expect price to stabilize around this level into the close of the week.

US Trade Deficit Narrows for the First Time in 6 Years

The latest trade data from the United States showed a decline in trade deficit. This was the first time since 2013 that the trade deficit declined.

The data showed that exports from the US fell 0.1% while imports were down 0.4%. China slipped from being the US’ number one trade partner to now coming in third, behind Canada and Mexico.

GBPUSD Breaks the Descending Triangle Pattern

The currency pair is currently trading below the main support area of 1.2960. Given the fact that prices were bouncing off this level, it is a key support area.

The breakdown below this support signals a move lower. As the descending triangle pattern comes into play, GBPUSD is at potential risk of further declines. The bigger downside target is at 1.2500

Gold Rebounds on Short Covering

The precious metal is rising for the second consecutive day. The gains come amid a rise in risk appetite. The gains are more likely as a result of short covering.

Gold prices fell sharply in the earlier part of the week. Investors will be looking at today’s jobs report following a strong increase in the manufacturing sector and a strong performance in ADP private payrolls.

XAUUSD Pares Losses but Upside Limited

The precious metal posted a healthy recovery during the intraday session. However, price action remains a bit stale at the current highs near 1563.

There is scope for price to slip further back to the lower target of 1534. To the upside, the gains remain caught near the 1572 – 1569 region.

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Source: https://www.orbex.com/blog/en/2020/02/china-cuts-tariffs-trump-acquitted
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