Playlist: From the floor

Show less
From the Floor: EM, China feeling the heat
03 August 2018 at 7:31 GMT
From the Floor: Trump ups the trade war ante
01 August 2018 at 8:00 GMT
Video / 01 August 2018 at 8:00 GMT

From the Floor: Trump ups the trade war ante

   • Apple shares rise on strong earnings
   • JPY sinks following BoJ meeting
   • USD firm despite inflation miss

By Michael McKenna

"The trade war headlines have come full circle," reports Saxo Bank Head of FX Strategy John Hardy. In this case, of course, 'full circle' means a return to President Trump's initial aggressive stance with the administration prepared to more than double the planned tariffs on $200 billion in Chinese imports in an attempt to get Beijing to the negotiation table.

In the forex space, Hardy notes the dollar's continued strength despite a slight June PCI inflation miss with the JPY as the largest mover in the wake of Monday's Bank of Japan meeting.

"The BoJ's ultra-loose policies are set to continue," says Saxo fixed income specialist Althea Spinozzi, who adds that governor Kuroda 'blinked' in the face of market pressure and let the 10-year Japanese government bond yield fluctuate 20 basis points around zero.

"The JPY weakness followed the initial plunge in JGB yields," says Hardy, who adds that the yield move – but not that of the currency – has since retraced.

In stocks, Apple shares gained 4% after hours following a strong earnings release while in the commodities space, Saxo Head of Commodity Strategy Ole Hansen says that trade war fears appear to be offsetting supply risks in crude oil while gold remains significantly correlated to CNY with key support at $1,210/oz.

Source: Saxo Bank 


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail