How Trump’s tariffs impact US citizens? EUR/USD analysis for 17 – 22 June 2019
Did you miss me? – I would like to believe so )) I and kids had a flue. But now I am back to trading. Trump and tariffs are recently the hottest topic. Oh yeah, this guys is making crazy traders all around the world. Recently Mr. President twitted that tariffs already gave billions for the US economy. But are they good for American citizens and residents?
Trump uses tariffs and trade war to boost domestic production. Well, it may work and but there is a lot of minuses. Fewer goods will be imported into the country, and as a result, citizens will have less choice. If you are in love with some of the foreign products, it will cost you more money. Even price od domestic products can go up, as many ingredients and supplies are imported. So, as you see, citizens and residents will pay more and more.
By the way, what happens to those billions received from tariffs? – Oh well, they will go to treasury and citizens can enjoy increasing Fed’s balance sheet. Not much use for people yup? If the central bank were doing its job right, we wouldn’t have so many recessions since the Federal Reserve was established. Besides, such a policy can scare foreign investors. We already saw significant declines in the stock market. Even if you don’t have any relationship to markets, you can feel the impact on your retirement account. There is good news – the impact will be short – term 🙂 Nearest time we will see a final wave up in dollar before a significant decline. So, let’s make some money.
Those of you who have running longs in EUR/USD should consider to take profits at 1.12800 – 1.13100. If price gets rejected in this range, that will be our entry for shorts with target 1.11900 – 1.11600. Still, some calculations show 1.13700 – 1.13900 as reversal point. But based on weekly closing, I think we already topped. And I will trade on managed accounts accordingly.
Happy trading week!