Trump Targets Chinese Tech; BoJ Maintains Status-Quo
Published June 15, 2018
President Donald Trump has approved tariffs on Chinese goods worth about $50 billion. The Trump Administration is preparing to release a refined list of Chinese products to be hit with tariffs that targets technologies where China wants to establish itself as a leader. The US is also preparing a second list of $100 billion of imports from China to ratchet up the pressure on Beijing’s trade policies.
The euro has gained slightly against the greenback this morning, reaching as high as 1.1615 after the major drop experienced in Thursday’s session. The move comes as the ECB pledged to keep interest rates unchanged at current record lows, at least through the summer of 2019.
The Bank of Japan ended three days of major central bank decisions by leaving monetary policy unchanged, maintaining the settings on its yield curve control program and asset purchases. This leaves the BoJ increasingly out of step with the US Federal Reserve and the European Central Bank, with Governor Kuroda set to stick with his current policies.
Next week’s meeting of OPEC and its allies is shaping up as a standoff between Saudi Arabia and Russia favouring production increases and Iran, Iraq and Venezuela all opposing the moves. A barrel of West Texas Intermediate for July delivery was trading at $66.91 at the time of writing.