FX.co ★ EURUSD: US-China trade relations may come to a standstill. Euro buyers believe in the continuation of the upward trend

Today, it became known that the US increases duties from 10% to 25% on Chinese imports in the amount of $200 billion. The American President spoke about this last weekend. The meeting, which began yesterday between representatives of the US and China, has not yet yielded any results and will continue today. The White House said they did not plan to suspend the promised increase in duties even during further negotiations.

In turn, the Ministry of Commerce of China said that they would take retaliatory measures after the increase in duties by the United States, expressing regret. The details and timing of the response are not yet known.

The market reaction was quite restrained, as many traders expected this development of the situation. Another thing is how the market will react after the delay in negotiations or after the introduction of retaliatory duties by China.

As for the fundamental statistics, which was released yesterday on the American economy, there have been no major changes since the publication of a number of reports.

According to the US Department of Labor, the number of initial claims for unemployment benefits for the week from April 28 to May 4 fell to 228,000, while economists had expected the number of applications to be 220,000. The moving average for four weeks rose to 220,250.

The number of secondary claims for unemployment benefits increased by 13,000, to 1,684,000.

US producer prices showed moderate growth, which clearly does not suit the Federal Reserve System.

According to the Ministry of Labor, the US producer price index rose by 0.2% in April this year compared with the previous month. Economists had forecast a PPI growth of 0.3%. The base index, which does not take into account volatile categories, showed an increase of 0.1% over the reporting period.

Compared with the same period of the previous year, the PPI index in April increased by 2.2%, while the base PPI showed an annual growth of 2.4%.

Today, a report on the consumer price index for April of this year will be published. It is expected to grow by 0.4%, as in March. Let me remind you that the Fed is paying more attention to the rate of inflation. In a recent statement, the Committee noted that annual inflation remains below the target value of 2%.

As for the US trade deficit, in March of this year, it increased slightly due to imports.

According to a report by the US Department of Commerce, the trade deficit in goods and services in March 2019 increased by 1.5% compared with February and amounted to $50 billion. Economists had expected a deficit of $50.2 billion in March.

Imports rose 1.1% in March to $261.97 billion, while exports rose 1% to $211.97 billion.

One of the important economic indicators, as inventories in the US wholesale trade, turned out to be worse than economists' forecasts.

According to the data, stocks in March 2019 compared with February fell by 0.1%, while economists had expected stocks to remain unchanged. Sales in March increased by 2.3% compared with February and by 3.9% compared with March last year. The inventory-to-sales ratio was 1.32 in March.

As for the technical picture of the EURUSD pair, buyers of risky assets achieved their goal yesterday and managed to overcome the resistance of 1.1215. At present, their main task is to maintain this level, which will maintain the upward trend in risky assets and will lead to the renewal of highs in the region of 1.1290 and 1.1340. The return of the euro to the level of 1.1215 can quickly return large sellers to the market, who are betting on the further continuation of the downward trend with the update of the lows in the area of 1.1130 and 1.1080.