The USD is attacking again. Overview for 18.06.2018

The main currency pair started this week with another decline; investors are worried by trade wars.

On Monday, EURUSD remains weak due to investors’ fears of new trade wars. The current quote for the instrument is 1.1570.

The week before, the USD was also pretty aggressive against the Euro, but there were fundamental reasons for that. This time, the reason is that most investors are just trying to avoid risks, because trade wars between the USA and China are once again becoming a playground for politicians’ fights.

Late last week, the US President Donald Trump announced new import duties on a wide range of goods from China; the total number is more than 1,000 items. The list doesn’t contain everyday products of mobile phones, for example, but includes different equipment and technics. The first “wave” will start on July 6^th. When it comes to other goods, the country’s politicians are still discussing them. The announced amount of duties is 50 billion USD. The response from China came quickly – the country told investors that it was also ready to introduce the same duties for the USA, but they would include meat and soy to the list.

Investors are feeling nervous. New trade wars may seriously influence economies of developing countries, cause some supply problems, and make manufacturers and investors hedge their risks more actively. Apart from this, reputations of both suppliers and manufacturers from all over the world may take a huge dent.

There are no significant macroeconomic statistics for EURUSD today, but one should pay attention to the speech to be delivered by the КУСИ Governor Mario Draghi in the evening.