U.S. President Donald Trump signed a memorandum on Friday that could impose tariffs on up to $60 billion of imports from China, although the measures have a 30-day consultation period before they take effect. In response to the U.S. anti-China tariffs, China plans to impose retaliatory tariffs on $3 billion of U.S. imports. The country planned to impose 15% tariffs on steel pipes, fruit, wine and other products from the U.S. It also planned to add 25% tariffs on pork and recycled aluminium Fears of a full-blown trade war between the United States and China battered Asian shares again on Monday, keeping the safe haven yen near a 16-month peak as investors fretted over the fate of global growth.
In currencies the dollar plunged further against other currencies in Asia on Monday morning as the greenback was dragged down by global fears of a full-blown trade war between the world’s two largest economies. USD/JPY pair gained 0.20% to 104.95, after falling to a one-month low at 104.67. EURUSD was up 0.1 percent at$1.2367.
In commodities, international Brent crude futures opened above 70 per barrel for the first time since January. Prices were lifted by expectations that OPEC-leader Saudi Arabia may extend supply cuts into 2019, as well as concerns that the United States may re-introduce sanctions against Iran.
The economic calendar comes with only a few economic events, a relative light economic calendar with main economic data in the European and American Session. A low to moderate volatility and price action is expected today.