Trump to hike tariffs against China up to 25% on $200B goods on Friday

President Donald Trump commented on the Twitter social network platform that China's $ 200 billion worth of goods tariffs will rise from 10% to 25% on Friday and said other imported goods would be taxed 25% soon.

Trade negotiations will continue this week in Washington.

Just as traders thought the trading relationship between the world's two strongest economies was improving and the end of the war apparent, Trump again did what was the best - an unexpected move that fills the hopes of quick and painless resolution relations. This move will certainly play a big part in the FX market during the week.

Indicative opening prices for FX markets in a low-liquid environment have reported that Chinese Yuan collapses by more than 500 pips and is currently lying on a 3-month low. This is the biggest crash of the currency since August.

We expect the strengthening of hedging instruments, with the FX markets the most favored currency the Yen - the USD / JPY currency pair will open around 110.67, compared with the closing of 110.09 on Friday night.

It is interesting to see if algorithmic traders buy the dip at the opening of the markets. It is important to note that China remains closed today due to national holidays.

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