US stock indices have had a positive week and are waiting on earnings reports from big banks in JPM , WFC ,and C out later tonight. Markets have chosen to ignore threats of a trade war between the US and China and have focused on the strength of the domestic economy and the potential for good growth in earnings.
The US dollar has also strengthened on the higher yields available and as a safe haven from any market turmoil. Trump is causing chaos wherever he goes and after upsetting Germany and then NATO now he has created a storm in the UK but saying the Brexit deal is bad and that a US/UK trade deal.
The Dow looks to open at 24911 down 13 , the S&P500 at 2797 down 1 and the Nasdaq which has hit a record level looks to open at 7370 up 4. In FX the US Dollar index is at 94.81 up 24 , with EUR at 1.1642 down 22 , the GBP at 1.3158 down 45 and the JPY is stronger by 4 at 112.48. Gold is hit lower at 1240.35 down 5.70.
Crude oil is up 38 at 70.73 after a large fall this week on fears for a weakening in demand if the trade tension increases and with Libya able to ramp up the production supply problems are reducing.
The Chinese trade data was out earlier today and the surplus with the USA was 28.97 bn which is the highest since 1999. With the US economy growing solidly the Chinese exports are going to stay strong and with Chinese economy slowing then Chinese imports are likely to weaken causing further trade tensions. This situation should see the Chinese currency weaken against the USD.
Daily Chart - USD/CNH - 6.9800 was previous high at the end of 2016.