EncoreFX’s daily market updates are written by our experienced and professional dealing team.
ECB Ending Bond Purchases | Trade War Averted Temporarily
Published July 26, 2018
After trade talks in Washington, President Donald Trump backed off on threats to impose tariffs on cars imported to the US while European Commission President Juncker said the European Union would import more US soybeans. The easing of trade tensions has been welcomed by markets, though steel and aluminum tariffs continue to be in effect.
Mexican and Canadian officials are optimistic they can reach a NAFTA trade deal with the US in the next several months, amid sticking points on car production, an automatic expiration clause, and President Donald Trump’s threats to impose tariffs on foreign vehicles.
The European Central Bank stuck to its plan to end bond purchases as the European Union and the US stepped back from a trade war. The euro held steady with trading little changed at $1.1720. The decision comes a day after European Commission President Juncker and US President Trump agreed to work toward lowering barriers.
Oil has leveled off as plunging crude and gasoline inventories in the world’s largest economies heightens supply concerns. The EIA also reported that distillate supplies have dropped, while oil inventories stored at the key Oklahoma pipeline hub dropped to the lowest since 2014. West Texas Intermediate was trading at $69.24 at the time of writing.