The economic reports are scarce this week. The global markets may get interesting figures only on Friday once the UK and USA release economic reports. Till that time, the players cannot choose but monitor the development of the US-China trade conflict.
The conflict expectedly showed new development. The markets are now running from the risks after a short-lived break. Specifically, Washington has announced the list of additional Chinese goods subject to 25% tariffs beginning from August 23. As a result, the situation escalates more, entailing new series of concerns, in particular regarding further economic upturn under the tariffs imposed by both countries.
However, the markets did not fall in panics this time, which can be partly explained by the released figures of import and export supplies in China. The data was quite good, which means that the conflict is yet to put strong pressure on the trading.
At the same time, there are other guides in the market, so the currencies are following the sentiments towards the risk. The US dollar to yen rate is falling down to 111.00 driven by stronger demand for the Japanese currency. At the same time, European currencies have taken a back foot. However, the US dollar to yen rate has limited room for a decline – the rate is above 110.50 which may support it.