It is a risk day in Asia, since merchants seem to the response of Beijing to the reciprocal tariffs of the president of the United States, Donald Trump, about China and other Asian nations.
On Wednesday, Trump announced reciprocal tariffs on imports of 180 nations, including the highest taxes in the commercial partners identified as the worst criminals, such as China and the European Union.
Trump imposed a new 34%rate on China’s assets, in addition to the existing 20%tax, which raised the total 54%tax, the highest for any nation. Meanwhile, the last action did not affect Canada and Mexico.
The observers say that the ball is now on the court of China, and the nature of its reprisals could determine the reaction of the market.
“Everything now depends on China. If China devalues the Yuan in response to the large and additional American tariffs today, which establishes a global risk that first hits EMS and then, if it persists, it spills to the United States. Until now it has maintained a very low profile. That can now end,” Robin Brooks, managing director and chief of economists in the International Institute of Finance, said in X.
Thursday morning, Beijing urged the United States to lift tariffs while promising immediately. Meanwhile, the Chinese Yuan fell to a minimum of seven weeks of 7 rmb/USD along with losses in Asian actions and an imminent cross of death in Bitcoin (BTC).
Letting Yuan depreciate, which makes Chinese products more attractive in international markets, is a way to counteract Trump’s rates. That said, it could mean problems for transport operations (currency) and financial goods, as observed in 2015 and 2018.
In addition, the potential intervention of the Popular Bank of China (PBOC) to stop a rapid decrease in Yuan can increase the dollar index, inadvertently weighing risk assets, including actions and cryptocurrencies.
It is no coincidence that Asian actions will be negotiated in red at the time of publication, with Japan Nikkei, reaching a minimum of eight months. Futures of US shares. UU. Fell more than 2%, pointing out the risk mode.
Bitcoin (BTC), the leading cryptocurrency for market value, quoted about $ 83,300, since it fell from $ 88,000 to $ 82,500 after the Trump Rate announcement, according to Coendesk market data.
The single mobile (SMA) average (SMA) of the spot price of the cryptocurrency appears on the way to cross below its 200 -day SMA, confirming what is known as the “Death Cross” technical pattern.
Although it has a mixed record of predicting price trends, the last cross that occurs in the context of the growing commercial tensions deserves attention, even more, since the price of the options now shows bias for the posts or the downward protection at the end of June, according to Delibit and Amberdata.
