Today is the beginning of a new week, and as such we have much in store for the next few business days.
First of all, the rising tensions between China and the United States on account of President Trump’s proposed second round of tariffs specifically on China will be at the center of investors’ focus. It appears that China and the US have entered into negotiations on the matter of the American trade deficit with China, possibly looking for ways to avoid the tariffs and prevent a trade war. It is too early to tell whether the talks will be successful.
The risks associated with a possible trade war, as well as the general political issues in the United States at the moment have dragged the dollar further down. The decrease is even more surprising due to the fact that last week the Federal Reserve raised interest rates, which was supposed to support the dollar.
After a climb last week, the price of oil has once again retreated due to the large output in the United States, offsetting OPEC’s efforts to limit supply. WTI dropped to $65.47, while the Brent crude was trading around $69.56.
