• USD/CNY surged to a seven-week high on Thursday as the Chinese yuan weakened following President Trump’s announcement of severe tariffs aimed at China and other trading partners.
• On Wednesday, Trump introduced a new 10% baseline U.S. tariff on all imports, with significantly higher tariffs on certain trading partners, especially in Asia.
• Trump announced that China would face a 34% tariff, adding to the 20% imposed earlier this year, bringing the total new levy to 54%, close to the 60% he had threatened during his campaign.
• Trump defended his tariffs, citing the trade imbalance between U.S. tariffs and those imposed by other nations as the reason for his actions.
• At GMT 09:32, the dollar up 0.45% to 7.301 against the Chinese Yuan.
• Immediate resistance is located at 7.304(38.2%fib), any close above will push the pair towards 7.341(23.6%fib)
• Support is seen at 7.276(50%fib) and break below could take the pair towards 7.243(61.8%fib).
Recommendation: Good to buy around 7.290, with stop loss of 7.220 and target price of 7.360
