The main currency pair started this week by falling due to a new wave of “trade wars”.
EURUSD is falling at the beginning of this week. The current quote for the instrument is 1.1642.
Investors are afraid that the USA may push their “trade wars” with China too far, which will surely lead to irreversible consequences not only for these countries, but for the entire financial world as well.
We’re talking about today’s article in the Wall Street Journal, which says that the USA might introduce new sanctions against China. This time, it’s not about duties on different products, but restrictions to investments in sectors of technology, from biological and pharmaceutical to IT. In fact, the USA may apply restriction or even prohibit Chinese companies to invest in American enterprises from some particular sectors.
This move may really hurt and prevent Chinese companies from becoming the world’s leaders in technologies. China may respond very quickly and in a big way, which the USA won’t like for sure. Still, the USA aren’t going to stop eliminating competition that may hurt or ruin their native companies. That’s not a very good signal.
No one has yet announced the above-mentioned plans officially, but the article in such respected source says that it might happen until the end of June. One way or another, risks of “trade wars” escalation make investors turn to “safe haven” assets. In this light, both the USD and the Yen will look very attractive.
Orgin: RoboForex
