EURUSD is stable. Overview for 25.08.2020

EURUSD is up in the air on Tuesday; market players are waiting for news.

The major currency pair is stable on Tuesday morning and has barely changed its position if compared with yesterday’s trading session. The current quote for the instrument is 1.1810.

Due to the lack of important statistics decided to take a back seat and continue analyzing the signals they received earlier.  

The topic that is definitely worth paying attention to is the US-Chinese conflict: the problem has calmed down a little bit but everyone is sure it will revive soon. For example, Anthony Rowley, a veteran journalist specializing in Asian economic and financial affairs, believes that several officials in China are “all-ready” for a global financial war. Eventually, it might lead to the complete elimination of the USA from the chain of international payment systems in the region or to the USA’s capturing some Chinese assets. Both scenarios are equally probable and that’s scary. 

Not long ago, Reuters wrote that China should be always ready for a worst-case scenario of developments in their relations with Washington. It might well be that after failing to achieve good results in trade wars, the White House may opt for a financial conflict. 

One way or another, Chinese giants, such as Huawei, TikTok, and others, continue working under huge American pressure, and this story won’t end so easily. It means that demand for the USD as a “safe haven” asset may go up in the mid-term.