Gold prices tumbled as the White House announced a list of tariffs on China that totals $200 billion. The list of 10% tariffs on $200 billion in Chinese goods, as the president’s recent threats to escalate a broadening trade war with Beijing came to fruition. The tariffs will not go into effect immediately but will undergo a two-month review process, with hearings Augusts 20-23.
The yellow metal tumbled through support which is now seen as resistance at the 10-day moving average at 1,252. A break of the July lows at 1,238 would lead to a test of the December lows at 1,236. Prices closed on the lows of the session, and did not attempt a rally throughout the day. Momentum is decelerating as the MACD prints near the zero index level with a declining trajectory which points to some consolidation. The fast stochastic generated a crossover sell signal, which points to accelerating negative momentum.
ECB’s Villeroy Said that an ECB rate hike possible through summer 2019
ECB’s Villeroy Said that an ECB rate hike possible through summer 2019. The French central bank head said an interest rate increase “could some at the earliest through the summer of 2019, depending on the inflation outlook”. This ties in with recent source stories suggesting a rate hike possibly in September/October, rather than the December.
Italy doesn’t consider plan B for euro exit
Italy doesn’t consider plan B for euro exit. Italy’s Deputy Italian Prime Minister Luigi Di Maio reaffirmed Italy’s commitment to the monetary union saying that “the government does not want to leave the euro” and is not preparing for it. The affirmation comes after European Affairs Minister Savona said yesterday that Italy needs to be ready for a break up of the Eurozone in case another country pulled out.
This article was originally posted on FX Empire
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