The Eurozone is reported to have imposed 6-month duties on the import of steel products from China. This way the local authorities are trying to defend the Eurozone’s steel industry, which is currently suffering from overproduction.
For now, we know that Eurofer, the European association of steel manufacturers, filed a claim against their Chinese counterparts. They are said to be blaming the rivals for dumping prices in Europe to oust local steel companies out of business.
To be more specific, they say that Chinese steel companies have managed to increase their market share in Europe from 4,6% all the way up to 14,4% over the last 3 years after dumping steel prices by as much as 29% over the period.
At the same time, the period of ultra-low interest rates seems to be overextended. Even despite the fact that the European economy is still showing signs of growth, local banks have already found themselves on the verge of crisis.
This standpoint is getting more and more popular with European politicians, including the finance minister of Germany and several IMF representatives. To be more specific, the IMF mentioned this during the report made for the G20 summit in Washington. When even the IMF warns about the consequences of ultra-easy monetary policies, they hope that other financial officials of the Eurozone will treat this problem seriously as well.
At the same time, it is important to note that the Bank for International Settlements (BIS) warned about the threat of a new debt crisis back in June 2016. The IMF warns that the global debt owed by all the countries in the world has already exceeded $152 trillion or 225% of the global GDP. Still, for some reason the IMF refuses to acknowledge the direct connection between the ECB and Deutsche Bank’s low interest rates and the critical situation in the European banking system.
According to the SRP Department of Masterforex-V Academy, the complicated flat market of EURUSD is still underway. This is confirmed by the SRP tool applied to the H4 chart of EURUSD:
