As trade wars continue to rage, understanding the reverberations of their consequences on the global forex market is crucial for investors. In this article, we’ll take a look at the current situation in the forex market, and explore how recent developments in the ongoing trade wars are influencing currency exchange rates around the world.
What is a Trade War?
A trade war arises when one country retaliates against another by raising import tariffs or placing other restrictions on the other country’s imports. For example, the US-China trade war began in 2018 when the US imposed a 25 percent tariff on Chinese imports. In response, China has retaliated by raising tariffs against US exports. This has had a major impact on the global economy, leading to a slowdown in global economic growth.
In addition, the US-China trade war has led to an increase in volatility in financial markets. As the markets try to adjust to the changing economic landscape, currency traders have become more cautious. This can make the forex market difficult to trade in, as prices can quickly move against a trader’s position.
The Impact of the US-China Trade War on Forex Trading
The US-China trade war has had a significant impact on the forex market. Since the US and China are two of the world’s largest economies, changes in the US-China trade balance can significantly affect currencies. For example, when US tariffs are imposed, this can lead to a weakening of the Chinese yuan, which in turn affects the other currencies it is traded against.
In addition, the US-China trade war can make it difficult for traders to anticipate the market’s movements in order to take advantage of trading opportunities. As the trade war is unpredictable, traders need to be aware of the news and the latest developments in the trade war. This information helps traders make informed decisions about which currencies to pair, and how to position trades accordingly.
Forex News: Tracking US-China Trade War Developments
Tracking the news related to US-China trade war is essential for successful forex trading. FOREX.com offers up-to-date economic trend research publications, breaking financial news, and expert commentary from its global research team. This can help traders keep abreast of the latest developments in the trade war and to stay ahead of the markets.
FOREX.com provides details on weekly updates, covering week ahead and weekly recaps of the global financial markets. It also publishes unrivalled market forecasts and trend projection publications. As well, it provides insightful commentary of the major developments and policy decisions that influence the different currency pairs.
In addition, FOREX.com offers daily updates on the forex market movements and offers options analysis to help traders make sound trading decisions in the midst of the US-China trade war. With a range of sophisticated tools, traders can monitor how the trade war influences market expectations and focus on options volatility to make informed decisions about event risk.
By staying informed and taking advantage of the resources available on FOREX.com, traders can make well-informed trading decisions and successfully position themselves for opportunity in the ever-shifting forex market. FOREX.com’s up-to-date news and comprehensive analysis will help keep traders apprised of all the developments related to the US-China trade war, enabling more successful trading.
Benjamin Gentry 
Simon Cristian