Asia FX Handover Tariff Man Pepper Sprays Mexico

Another risk-off session fuelled by growth concerns and trade wars.
Tariff Man (aka Donald Trump) said he’s to place a 5% tariff on Mexican goods from the 10^th June until Mexican immigrants stop crossing the border illegally. The levy would then be increased gradually until the ‘problem’ was solved.
The Mexican peso is within its most bearish session since October. CAD (the FX major’s proxy for MXN) is today’s weakest major and JPY and CHF are the strongest.
China’s manufacturing PMI contracted more than expected at 49.4 (49.9 forecast) and down from 50.1, making it’s the 4^th contraction in 6 months. Another own goal for global growth.
We see a glimmer of light for gold which hit a 2-week high and WTI touched $56 to carve out a new range for oil bears to fade into.
Indices are expected to open lower with futures markets headed south, on the back of Trump’s latest tariffs and weak China PMI data.
China are reported to have a plan in place to limit sales of rare earth materials in place ‘if necessary’.

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826). Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosures and Risk Warning. Increased leverage increases risk.

GAIN Capital Group LLC (dba FOREX.com) 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA. GAIN Capital Group LLC is a wholly-owned subsidiary of StoneX Group Inc.