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Concerns over an all-out trade war with China escalated on Wednesday, resulting in another day of losses on Wall Street. Investors are growing increasingly nervous as Trump rebuilds a White House team which is more in line with his interventionist approach to foreign policy and as reports surfaced that Trump is looking to put $60 billion of tariffs
Both the Dow and the S&P notched up a third straight day of losses, closing down 1% and 0.6% respectively, notably with the S&P dipping below its 50-day moving average. On the Dow,
Heightened fears over trade wars and the direction of foreign policy in the White House weighed on sentiment overnight
Dollar gains ground
Risk off once again dominated
Russia concerns expected to pick up
With no high impacting eurozone or UK data due for release investors could be tempted to focus rising geopolitical tension between Russia and the U.K. The pound was under pressure in the previous session as relations between the two nations deteriorated to a level not seen since the cold war. A period of
GBP to $1.38?
Despite pressure on the pound, GBP/USD showed resilience in the previous session, flirting with $1.40 before closing the session almost flat at $1.3969. A continued deterioration in UK Russian tensions today, plus better than expected US initial jobless claims and US Philadelphia Fed Business Outlook releases could see GBP/USD head southwards towards $1.3960, before extending losses to $1.3915 and on to $1.3880. On the upside, watch for a move above $1.40 to indicate a move higher to $1.4040.
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