Trump pours cold water on jobs rally
US President Trump has threatened to ramp up US tariffs on Chinese goods by this Friday as a result of the slow progress in current negotiations. US indices are facing hefty losses this morning as the strong US jobs report on Friday is quickly forgotten.
US30USD Daily Chart
- The US30 index has wiped out all of last Friday’s gains and has touched the lowest since April 1 after the Trump tweet
- The index has traded below the 55-day moving average at 26,046 for the first time since January 23. The next possible support point could be the 200-day moving average at 25,390
- The US economy added 263,000 jobs in April, well above forecasts of a 185.000 gain. The unemployment rate hit 3.6%, the lowest in more than 50 years, though a huge drop in the labour force contributed. The solid numbers are now forgotten as the market focuses on US-China trade talks after Trump’s tariff threat.
DE30EUR Daily Chart
- The Germany30 index has retreated from seven-month highs in early trading, echoing the decline in US indices
- The rising 55-day moving average is at 11,754, and has supported prices on a closing basis since February 8
- Euro-zone investor confidence is seen deteriorating in May, with the Sentix reading falling to -2.1 from -0.3.
CN50USD Daily Chart
- China shares fell dramatically at the open this morning following Trump’s threat to place additional tariffs on a whopping $525b of Chines goods by Friday
- The index has slashed through the 23.6% Fibonacci retracement of the 2019 rally at 13,272 and is testing the 55-day moving average at 13,075. This moving average has supported prices on a closing basis since January 15
- The Wall Street Journal is suggesting that China may even cancel the trade talks, which are due to resume in Washington this week, after Trump’s latest threat. Such a move would be disastrous for risk appetite.
...............Author..............
Admin@GreenForexClub
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