Question

how has the U.S. and China Trade war impacted the global market, foriegn currency, and stock market?

Answer 1

The budding trade war between the U.S. and China has great potential to upset the relative calm of global markets. Their two-way trade is estimated to be worth more than US$ 640 billion annually. This relationship will evolve dramatically if new tariffs involving hundreds of billions of dollars come into effect. Industries are likely to be negatively affected as producers and corporate interests on both sides to jockey for survival, from agriculture to technology.

In short, a disruption of the existing trade relationship between the US and China has the potential to redefine international economics. Aside from an intensive revaluation, the consequences will be exchange rate volatility. Periodic Volatility: Short-term volatility will plague the USD as announcements for new tariffs or the enactment of existing ones become public.
Fed Policy: U.S. decisions are the primary drivers of the value of the US Dollar. Fed. Fed. Increases in the federal funds rate limit inflationary pressures generated by strong economic performance, fostering monetary power. Future plans include four-fold increase of the federal funding rate in 2018, to 2.5 percent by year-end.

It's important to remember that although a trade war between the U.S. and China is daunting on many fronts, it's a fluid situation. It is clear that, as conversations continue, both sides are interested in preserving their economic prowess. In the case of a major downturn in these economies, a cease-fire can come in short order. An extended trade war may be more bad news for the economy at large. Enterprises may refrain from investing in new plants or hiring until a trade agreement is in place. Such a pullback could lead to slower growth in employment and, in turn, affect consumer spending, which is the US economy's biggest driver. "That's going to be a concern," Still, a lot needs to change before the economy takes a real turn for the worse. The trade war could be resolved relatively soon and, in turn, would encourage firms to boost investment and persuade consumers.