As the Dollar -Yen lies dormant as the rest of the global markets move and churn, the Geopolitical tensions between the U.S. and China was turned up last week after the U.S. Senate passed a new bill that threatens to de-list Chinese stocks from U.S. exchanges if they do not comply with more rigorous financial oversight requirements.
China’s National People’s Congress has also approved a controversial new national security bill that would decrease the autonomy of the so-called Chinese special administrative region of Hong Kong.
On Friday, during the news conference, President Trump said he would take action to eliminate special treatment towards Hong Kong.
However, he did not indicate the U.S. would pull out of the phase one trade agreement reached with China earlier this year, easing trader concerns for the time being.
White House economic advisor Larry Kudlow said Friday that people in Hong Kong are “furious,” adding: “the U.S. government is … I’ll use the word furious at what China has done in recent days, weeks, and months. They have not behaved well, and they have lost the trust, I think, of the whole Western world.”
Viewing the technical aspect, as we continue to monitor the two leading indicators, the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) pressures the 50-midway point, while the MACD is bullish, however, hold to a weak signal.
Due to the 107.25 level weakened on Friday, should inspire further weakness into this week.
A decisive break would open the way towards the lower side of 106.00 with any advancement expected to find supply from 108.15-25.